An interesting coincidence. I ranted yesterday about Dave McClure's conclusions about
- the future success potential of large VCs and
- what constitutes a good exit for entrepreneurs in Asia
I had a tiny voice telling me I'd end up with egg on my face for stating my opinions so vociferously. But look what happened almost immediately.
Today someone pointed me to a report by VCCircle about a planned IPO by Just Dial, an Indian directory service.
VCCircle speculates that Just Dial could be looking to IPO at a valuation of over Rs. 2000 crore (20 billion rupees or about $430 million).
Is this a successful exit? Most definitely. The article says that Just Dial had revenues of Rs 134 crore in the year ending March 2010. That means a trailing P/S ratio of 15x when they list. That's not chump change!
Has a large blue-chip Silicon Valley VC made money in this deal? Sure. Sequoia will make a 5x return in two years or less. What has worked in Silicon Valley in the past for the big-boy VCs may not work there in future, but don't count 'em out elsewhere.
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