Early Facebook backer, and current board member, Peter Thiel has cashed out the majority of his stake, according to a filing with the SEC.He’s sold 20.6 million shares at an average price of ~$20. He’s holding on to 5.6 million shares.
This looks bad, but it’s really not. Thiel made a $500,000 angel investment in Facebook in 2004. Eight years later, he’s ready to cash out. (Also, this was his plan all along. Fortune points out the filing said he locked his sale plans in place back in May.)
We’re sure he would have liked to make more money, but $406 million is pretty good. Plus, he’s already sold some of his shares during the IPO netting $638 million.
That’s over $1 billion from a $500,000 investment.
And he’s still got millions of shares which can appreciate further in value.