• UberPeople.NET - Independent community of rideshare drivers. It's FREE to be a person and enjoy all the benefits of membership. JOIN US! CLICK HERE

Andreessen Horowitz, Founders Fund sell shares in Lyft to Saudi prince Feb

MrsUberJax

Well-Known Member
Two of ride-sharing service Lyft's most prominent investors, Andreessen Horowitz and Founders Fund, have sold $148 million in shares of the company to Saudi Arabia's Prince Alwaleed bin Talal, the Wall Street Journal reports.

In December, Lyft sold a 2.3 percent stake in the startup to Alwaleed and his Kingdom Holding Co. The billionaire prince also has investments in Apple and Twitter.

Enlarge
Venture capitalists are becoming increasingly impatient with highly-valued private… more

That stake was unveiled as part of a larger fundraising round, which brought in $247.7 million for a 5.3 stake of the company to unnamed investors. Lyft is valued at around $4.9 billion, while its main market competitor Uber has a valuation of almost $63 billion.


Founders Fund was created by Peter Thiel, the billionaire co-founder of PayPal.

"The Lyft transaction marks the first time Andreessen Horowitz has sold shares of a closely held company on the secondary market," The Journal said, citing a person familiar with the matter.

News that Andreessen Horowitz, long cheerleaders for the ongoing tech boom, has quietly sold part of its holdings in Lyft could be a sign that venture capitalists are becoming increasingly impatient with highly-valued private startups that seem allergic to going public.

"The share sales may reflect a desire by the venture funds to return cash to their own investors, called limited partners, which in recent years have waited longer to realize gains from high-flying startups that have delayed plans to go public," The Journal reports.

Andreessen Horowitz partner who led the investment in Lyft, Scott Weiss, taking time off from investing in order to spend more time with his family. But Weiss defended Lyft's future as bright in a statement to the paper and said the VC firm remains supportive of the startup overall.

“The bet on Lyft is that ride-sharing is a bigger market than just a car for hire and we are bringing the full resources of the firm to bear to advance their success,” Weiss said.

Get Contact Information for Founders Fund, LLC.

http://www.bizjournals.com/sanfrancisco/blog/techflash/2016/02/lyft-alwaleed-andreesen-horowitz-founders-fund.html?ana=e_du_nat&s=article_du&ed=2016-02-11&u=JLkzkZILKiomF8NzgLtgyQ0bfb5749&t=1455227237
 
Last edited:
Top