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Chronicles

The story behind the story

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Sources: Benchmark, GV sold ~14.5% of their Uber stakes, worth ~$900M, ~$350M respectively; Garrett Camp sold ~15% for ~$400M; Menlo sold ~46%, First Round ~38%

Google Ventures, or GV, also sold several hundred million dollars of stock in the transaction.

Recode Theodore Schleifer

Context & Ripple Effects

The SoftBank tender offer gave Uber shareholders 20 days to cash out at a $48B valuation or hold for a possible 2019 IPO, and this report shows who took the deal: Benchmark sold about 14.5% of its stake for roughly $900M, GV about 14.5% for ~$350M, founder Garrett Camp ~15% for ~$400M, while Menlo and First Round sold far larger fractions — 46% and 38% respectively.

The sellers aren't random. Benchmark had initiated the effort to sell stock before the CEO's ouster, making this the payoff of a process the firm itself started during Uber's governance crisis. For GV, partial exit closes a chapter on its 2013 $258M investment, which had devolved into a tense Alphabet–Uber relationship.

First-order effects

  • SoftBank converts its tender into concentrated ownership of Uber at a $48B mark, while Benchmark (~$900M), Garrett Camp (~$400M) and GV (~$350M) bank real liquidity years ahead of any IPO.
  • Menlo and First Round's outsized sale percentages — 46% and 38% — signal smaller funds treating this as their primary exit window rather than a trim.

Second-order effects

  • Shareholders who held out are now anchored to a $48B reference price set by the most informed sellers, raising the bar for what a 2019 IPO must clear to justify the wait.
  • SoftBank's new position gives it leverage over Uber's board dynamics going into the IPO, pressuring remaining early investors to align with or resist its agenda.

Third-order effects

  • If the pattern holds, structured secondaries to deep-pocketed buyers like SoftBank become a standard pre-IPO exit for late-stage VCs, decoupling fund returns from the IPO calendar.
  • A $48B clearing price for Uber's most battle-tested investors becomes the de facto valuation benchmark other late-stage startups are measured against in future tenders.

The trend: Late-stage venture returns are increasingly realized through negotiated secondary sales to mega-buyers like SoftBank rather than by waiting for IPO windows.

Discussion

  • @teddyschleifer Teddy Schleifer on x
    News: Google Ventures sold about $350 million in Uber stock. Sale comes as Uber and Alphabet butt heads. http://www.recode.net/... http://twitter.com/...
  • @jeff Jeff Clavier on x
    Menlo, Benchmark, First Round sold Uber stakes worth hundreds of millions http://techcrunch.com/... > DPI, baby. DPI. Congrats to our friends at @firstround for being believers of the first hour. And massively cashing out. That's when paper profits turn real. Before then, it's BS…
  • @shaig Shai on x
    Looks like First Round Capital is sitting on a 6x+ DPI (for Fund III) on the Uber sale http://techcrunch.com/...