Posted on 03/03/2017 2:35:30 PM PST by NYer
A private high school in California earned millions from the Snap Inc. public offering, after two students told their dad about the popularity of the app five years ago.
Saint Francis High School in Mountain View, Calif., invested $15,000 in Snapchat’s seed round when the dad, Lightspeed partner Barry Eggers, invited the school’s board to participate in the seed round with his firm. That investment has paid off, as Snap started trading Thursday, and closed 44% above its issue price.
Shares of Snap soared 11% Friday to $27.09, compared with the S&P 500 SPX, +0.05% which inched up less than 0.1%.
According to media outlets, Saint Francis sold two-thirds of its 2.1 million shares at the company’s $17 issue price, bringing in close to $24 million.
Lightspeed invested $485,000 in the round. The firm sold at least 4,632,890 shares in the offering, bringing in about $78.8 million. Lightspeed still owns 81,996,629 shares, according to the prospectus, and has voting rights associated with its stock.
Snip
Eggers approached the school about an investment after he saw his daughter and her friends sitting around the kitchen table “absorbed in their phones,” Eggers said in a blog post. Both she and his son confirmed that they used the app several times a day to message friends.
Eggers then went to Stanford University to meet with Snap co-founders Evan Spiegel and Bobby Murphy. Ten days later he made the seed investment, with participation from the SF Growth Fund.
“While I’ve enjoyed Snap’s journey with my partners as an early investor, I have the unexpected bonus of sharing the experience with my children,” Eggers wrote in the blog post.
(Excerpt) Read more at marketwatch.com ...
Forget the bake sales, ping!
How many shares at what price did they get them at?
2.1 million shares x what amount?
They sold some at $17 a share.
How to be an insider for the IPO’s stock?
If they sold they are lucky because the shorts are hammering the stock now it seems.
The stock has dropped 20% or so in a few days since their IPO. The company makes no money but their IPO made them “worth” $33 billion in a day.
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