While Union Square Ventures did receive a significant amount from the deal, the firm says it was nowhere near that high – something investors don't normally admit to.
So what was USV's actual return on investment?
According to Fortune's Dan Primack, it received "$192 million in proceeds." Spark Capital invested the same amount as Union Square Ventures, so according to Primack, the Boston-based firm also took home $192 million. Their stake was 35% combined and they invested $13 million each.
The initial report also stated that Spark Capital's Bijan Sabet took home $77 million himself from the deal. Primack says that isn't true. " The returns all are at fund-level rather than for individual partners," he writes. "In other words, Spark's Sabet likely makes millions off of this deal based on his share of Spark's "carried interest" – but nothing close to $77 million."
We reached out to Spark Capital's Bijan Sabet about his firm's return. While Sabet wouldn't comment on the exact amount, he did say this:
" Yes that Crains and PrivCo report was just garbage. Everything was wrong. I can't reveal specifics. But I can tell you we are thrilled with our investment. And USV and spark happily invested the same amount in every round."
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