"Had Xobni taken $1 million instead of 4, they’d all be buying beach houses right now. On the other hand, Microsoft might come back and offer the $40 or $50 million it would take to make the VCs agree (I think it would be a good idea for them to do so) and they’ll be buying beach house and Bentleys."
Let's say an angel would invest at the same valuation as the VC, then for $1M they would get 12.5% of the company. That would mean that when acquired for $20M, founders are left with $17.5M. For VCs with 50% stake and $40M acquisition founders are left with $20M. Not sure where Bentley's come from.
Angels would have invested 1m at a lower valuation than VCs. That's both the perk and the drawback of VC money. You can get more while giving up about the same amount of equity.
Let's say an angel would invest at the same valuation as the VC, then for $1M they would get 12.5% of the company. That would mean that when acquired for $20M, founders are left with $17.5M. For VCs with 50% stake and $40M acquisition founders are left with $20M. Not sure where Bentley's come from.