Roblox’s healthy public market debut gave founder David Baszucki a stake worth $4.5 billion. Here are the others who just got rich.

Brookhaven Roblox

Summary List Placement

For many parents (and their kids) across the US, Roblox has become the next best thing to exploring the world in real life.

The user-generated platform offers a mind-numbing array of “experiences,” allowing anyone to take their personal avatars and jump around to do just about anything imaginable.

Roblox’s growth and popularity, however, are anything but virtual. Fifteen years ago, the company was a tiny startup launched by cofounders David Baszucki, who remains CEO, and Erik Cassel, who died from cancer in 2013.

Today the company counts over half of all Americans under the age of 16 as users, it said recently. It has exploded from 12 million daily active users in 2018 to 17.6 million in 2019 — and grew 85%, to 32.6 million, in 2020. 

That’s the kind of growth that gets a startup a valuation of about $29 billion, which is where Roblox sat ahead of its direct listing on Wednesday. After getting a so-called reference price of $45 a share, the stock took off in its market debut, closing Wednesday up 54% to $69.47.

Roblox’s venture capital investors — which include Altos Ventures, Meritech Capital, and Tiger Global Management — are set to enjoy the spoils.

The company’s pre-public filing with the SEC didn’t name all of the investors who took part in Roblox’s $855.7 million overall fundraising through the years, but it did reveal its biggest shareholders.

We don’t know what investors paid for their shares to calculate their profit but we know the company’s Class A shares traded in the secondary market in 2018 at a range of $2.34 to $4.53 a share, and at $6.34 a share throughout 2020. The earliest investors paid only a few pennies per share, according to some reports. All this to say that many investors bought in at bargain prices.

And we can calculate the total value of each major shareholder’s stake by pricing all of their shares at Wednesday’s closing price of $69.47.

As is typical in tech IPOs these days, Roblox is using a two-tier structure where it sells Class A shares to the public, with each of those shares offering one vote per share; and it has Class B shares — which are owned only by its founders, executives and key investors — that come with 20 votes per share.

Roblox cofounder and CEO David Baszucki, through his Class B ownership, will have more than 70% of the company’s voting power.

Here’s who can cash out huge paydays now that Roblox is public.

SEE ALSO: Josh Kushner stands to make a mint on Oscar Health’s much-awaited IPO, and has almost total control. Here are the venture investors who will also do well.

Altos Ventures: $8.08 billion

Silicon Valley-based Altos Ventures has taken part in six of Roblox’s nine funding rounds, including last month when it bought 2 million shares in a Series H round for $90 million.

Altos managing director Anthony Lee has been on the Roblox board since 2008 as a lead independent director.

Its stake is:

  • 116.3 million Class A shares

At $69.47 a share, those shares are worth $8.08 billion.

Cofounder and CEO David Baszucki: $4.58 billion

It all started with a car crash.

The idea for Roblox began in 1989 when cofounder David Baszucki, a Stanford-trained electrical engineer, and Erik Cassel programmed a 2D simulated physics lab called Interactive Physics. Students across the world used Interactive Physics to see how two cars would crash, or how they could build destructible houses.

The founder says that Roblox was started in 2014 to replicate the imagination and creativity they watched being used in their simulations on a bigger scale. Thirty-seven million daily users later…

His stake is:

  • 8.66 million Class A shares and 57.3 million Class B shares

At $69.47 a share, those combined shares are worth $4.58 billion.

Meritech Capital: $3.84 billion

Meritech also has taken part in multiple funding rounds for Roblox, including a Series F in the summer of 2018, when it bought 3.63 million shares for $16.4 million ($4.51 per share) and a Series G in February 2020, buying 234,040 shares for $1.48 million ($6.32 per share).

Its stake is:

  • 55.3 million Class A shares.

At $69.47 a share, those shares are worth $3.84 billion.

Index Ventures: $3.69 billion

Index Ventures has taken part in three of Roblox’s funding rounds, most recently in its Series F in July 2018, when it bought 3.63 million shares for $16.4 million ($4.51 per share).

Its stake is:

  • 53.1 million Class A shares

At 69.47, those shares are worth $3.69 billion.

Tiger Global Management: $2.81 billion

Tiger Global has participated in Roblox’s last three funding rounds (Series F, G, H), buying 19 million shares at a price of $83.1 million ($4.37 per share).

Its stake is:

  • 40.4 million Class A shares

At $69.47, those shares are worth $2.81 billion.

First Round Capital: $2.33 billion

First Round took part in two relatively modest Series D rounds in 2009 and 2011, according to Crunchbase, when the company raised a combined $6.2 million.

Its stake is:

  • 33.6 million shares

At $69.47, those shares are worth $2.33 billion.

Greg Baszucki: $1.08 billion

The brother of Roblox cofounder David Baszucki, Greg Baszucki has been on the board since 2008. 

He’s the CEO of Wheelhouse Enterprises, a marketplace for buyers and sellers of business software, and is the cofounder of FounderPartners, which builds and invests in capital efficient mobile, internet and software companies.

His stake is:

  • 15.6 million Class A shares.

At $69.47, his stake is worth $1.08 billion.

Chief Business Officer Craig Donato: $213.3 million

Donato has served as the company’s chief business officer since December 2016. Prior to that, he served as vice president of business development at Nextdoor.com, a social network service for neighborhoods, from September 2015 to December 2016. 

His stake is:

  • 3.07 million Class A shares

At $69.47 a share, those shares are worth $213.3 million

CFO Mike Guthrie: $175.1 million

Mr. Guthrie has been Roblox’s chief financial officer since February 2018. Prior to that, he was CFO at automotive pricing and information website TrueCar from January 2012 to February 2019. 

His stake is:

  • 2.52 million Class A shares.

At $69.47 a share, those shares are worth $175.1 million.

Chris Carvalho, director: $148.7 million

Carvalho has been on the board since December 2015. Since January 2014, Mr. Carvalho has been a board member and an advisor to several private gaming and entertainment companies. Between January 2010 and December 2013, Carvalho was chief operating officer of Kabam Games, a developer of online computer games.

His stake is:

  • 2.14 million Class A shares

At $69.47 a share, those shares are worth $148.7 million.

Other investors: millions and millions

Additional investors that took part in Roblox’s funding over the years, but are below the 5% shareholder disclosure threshold, include Andreessen Horowitz, Tencent Holdings and Warner Music Group.

Andreessen, for example, took part in the company’s Series H round last month when it sold 11.9 million shares at $45 each for gross proceeds of about $535 million.

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