- The S-1 paperwork for Lyft’s anticipated multibillion IPO is now open to the public.
- It lists who the major shareholders are.
- These are the people that will cash in big time should the stock sale go well.
The S-1 paperwork for Lyft’s anticipated multibillion IPO is now open to the public, and it lists who the major shareholders are and how many shares they own. These are the executives and venture investors who will reap a huge financial windfall should the public love the stock and drive the share price up.
While we don’t know exactly how much this IPO will enrich each one of the early investors until the shares are priced, Lyft has revealed a share price range, giving us a better idea of who will reap the biggest rewards when Lyft goes public.
The company plans to sell just under 30.8 million Class A shares, which it plans to price between $US62 and $US68 each. That price could could higher if its roadshow with the initial investors goes well. At $US68 per share, Lyft would be valued at roughly $US20 billion, up from its last private financing round, which valued the company at $US15 billion.
Only Class A shares will be sold to the public. Class B shares, which carry more voting power, are being split between Lyft’s co-founders, Logan Green (who will own just over 60%) and John Zimmer (who owns just under 40%). So, even though they hold relatively small stakes of the public Class A shares, they will control nearly one-third, and nearly one-fifth of the total shareholder votes respectively.
If either of them were to sell their Class B shares (except in certain cases, like putting them in trust to a non-profit), they would convert to Class A shares, Lyft says in its documents. Therefore, for the sake of this estimate, we have calculated the value of the Class B shares as if they were Class A.
Here are all the people with sizeable stakes in the ride-hailing company:
Logan Green, cofounder and CEO
Green and cofounder John Zimmer began their collaboration in 2007 with a service called Zimride that helped people find carpools via Facebook.
In 2012, they launched a ride-sharing service that used a mobile app called Lyft. It took off from there.
After the IPO Green will own 7,689,182 of Class B shares. At the high end, $US68/share, this stake will be worth nearly $US523 million.
John Zimmer, cofounder and president
Zimmer spent a lot of time in college finding carpoolers to share his ride as he regularly drove from Cornell in upstate New York to New York City. He was introduced to Green over Facebook by a mutual friend. A week after they met, they were working on Zimride together, so the story goes.
After the IPO, Zimmer will own 5,090,527 shares of Class B stock, which could be worth over $US346 million.
Sean Aggarwal: 1.4 million shares
Sean Aggarwal is probably best known in Silicon Valley for his roles as the vice president of finance for eBay, PayPal, and Trulia. But he was an early angel investor and adviser for Lyft (joining the board in 2016).
And he’s the Lyft executive with the largest Class A individual stake in the company, with just under 1.41 million shares, worth $US95.6 million.
Hiroshi Mikitani for Rakuten
The Japan-based e-commerce powerhouse Rakuten poured $US300 million into Lyft in 2015 as part of a broader, $US530 million financing round, and Rakuten’s founder and CEO joined the board.
Rakuten also bought more shares in subsequent rounds, making it the single largest shareholder of the company.
Rakuten owns nearly 31.4 million shares, or 13% of the company, which are managed by its founder and CEO Hiroshi Mikitani. At the high end of $US68, these will be worth $US2.13 billion.
General Motors and Fidelity
General Motors and Fidelity each own nearly 19 million shares, almost 8% of the company each.
The mutual-fund giant Fidelity often invests in late-stage unicorn startups, but GM’s buy-in is more interesting.
In 2016, GM was rumoured to have tried to buy Lyft outright for between $US4.5 billion and $US6 billion, but Lyft turned the offer down.
So GM invested. The two were supposed to have struck up a strategic partnership over self-driving cars. But Lyft has also taken investment from GM rivals, such as Ford, though not at the same level.
After the IPO, at the high end, GM’s stake could be worth nearly $US1.27 billion; Fidelity’s, just over $US1.26 billion.
Ben Horowitz for Andreessen Horowitz
Andreessen Horowitz was a fairly early investor in Lyft, joining the company’s series C funding round of $US60 million in 2013.
The venture-capital firm then kept buying more shares in each subsequent round, gradually amassing a substantial chunk of the company.
Andreessen Horowitz now owns more than 15 million shares, or 6.25% of the company, which are overseen by the firm’s partner Ben Horowitz and could be worth just over $US1.02 billion.
David Lawee for CapitalG
David Lawee, who previously did mergers and acquisitions for Google, is the big-cheese partner for CapitalG, the growth-stage investment arm of Google’s parent company, Alphabet.
He led a massive $US1 billion round for Lyft in 2017 for CapitalG, just a few months after Lyft’s previous $US600 million raise.
The investment was widely interpreted as Google’s effort to switch horses in the ride-hailing race. Google had, years earlier, invested in Uber, but Google and Uber had locked horns competing over self-driving cars.
Twenty-five other investors piled in, bringing the total raised in the round to $US1.7 billion.
CapitalG has nearly 12.6 million shares of Lyft, or a 5.23% stake, which could be worth just over $US872 million.
Jon McNeill, chief operating officer
John McNeill left his job at Tesla as the head of global sales and marketing a year ago – as the electric-car maker was scrambling to produce its Model 3 – and joined Lyft as its chief operating officer.
McNeill has 736,932 shares of Lyft, which could be worth over $US50 million. According to the filing, the value of his total compensation package in 2018, including a $US419,000 salary and stock awards, was $US32.4 million.
Ran Makavy, chief product officer
Ran Makavy joined Lyft in 2016 after a four-year stint at Facebook, according to his LinkedIn profile. He started as vice president of growth and has since moved up to the positions of executive vice president and chief product officer.
His 326,250 shares of Class A stock in Lyft could be worth just over $US22 million. Makavy is also listed among the company’s executives with the highest compensation, which included a 2018 salary of roughly $US393,000.
Jonathan Christodoro for Icahn Enterprises
Icahn Enterprises is the investment company best known for its activist billionaire investor leader, Carl Icahn (pictured above). It bought into Lyft as part of the round led by Rakuten, and Jonathan Christodoro, Icahn Enterprises’ managing director, joined the board. The company’s stake consists of 12,856 Class A shares, according to the S-1, which could be worth $US874,208.
Navin Chaddha for Mayfield Fund
Mayfield Fund has been investing in Lyft since its series A funding round, when it was still Zimride. In fact, the venture capitalist that led that round, Raj Kapoor, eventually joined the company as the chief strategy officer.
Mayfield also joined the series B and D rounds, managed by the partner Navin Chaddha. Lyft has not disclosed how big the stake is, meaning Mayfield owns less than 5%.
A former senior adviser to President Barack Obama, Valerie Jarrett joined Lyft’s board of directors in July 2017. She has more than 11,000 shares, according to the S-1. These could be worth $US748,000.
Over 100 others
Lyft raised nearly $US5 billion in its life as a startup from over 115 investors. Most of them remain active investors, according to the online database Pitchbook, which is the keeper of such records (most of these people and companies are not listed in Lyft’s S-1).
Other investors include:
- The Chinese rideshare company Didi Chuxing.
- Floodgate Fund’s Ann Miura-Ko, who invested in several early rounds. Floodgate owns more than 1.5 million shares.
- The Saudi Kingdom Holding Co., founded by the nation’s wealthiest investor, Prince Al-Waleed bin Talal (who was arrested and later released by Crown Prince Mohammed bin Salman).
- Angel investments from David Sacks of Yammer and Zenefits fame, Troy Carter of Lady Gaga fame, and others.
Lyft has not disclosed the stakes of any of these other investors, meaning they own less than 5% of the company.
Business Insider Emails & Alerts
Site highlights each day to your inbox.