Uber finally went public on May 10, 2019 at $45/share with an initial valuation of roughly $82 billion fully diluted. They raised $8.1 billion in new capital during its IPO to fund operations.
Given Uber lost about $1.8 billion in 2018, they certainly need the new capital. After the IPO, Uber will be able to survive for at least five more years if their losses do not change.
As of June 20, 2020, Uber is struggling to generate cash flow due to COVID-19 and shelter-in-place. The stock has rebounded from its lows in March 2020. However, Uber really needs to slim down its operations and focus on profitability. It's hard to see Uber perform well in this environment.
Below are the 10 largest Uber shareholders who finally got liquid and got extraordinarily rich from the IPO. Uber's two founders and first employee are key beneficiaries. The other seven beneficiaries are all institutional funds.
The 10 Largest Uber Shareholders
The value of each shareholder's stake is based off the initial IPO valuation of $82 billion. Now that Uber is a public company, the valuation will depend on its publicly traded shares with the ticker symbol: UBER.
10. BlackRock
Investment firm BlackRock first backed Uber in 2014, when the ride-hailing company was valued at $17 billion. Blackrock is one of the largest money managers in the world, primarily due to its ETF business.
Post-IPO stake: $424 million
Post-IPO ownership: 0.55 percent
9. Blissful Thousand
The fund of Cheng Wei, the co-founder and CEO of ride-hailing company Didi Chuxing, which acquired Uber's Chinese operations in 2016.
Post-IPO stake: $887 million
Post-IPO ownership: 1.2 percent
8. Ryan Graves
He was Uber's first employee and, for a brief period in 2010, also its CEO. Graves served as Uber's SVP of global operations until 2017 and currently sits on its board.
Post-IPO stake: $1.4 billion
Post-IPO ownership: 1.9 percent
7. TPG Capital
This private equity firm was one of Uber's earliest investors, putting in around $90 million at a $3.5 billion valuation in 2013.
Post-IPO stake: $1.4 billion
Post-IPO ownership: 1.9 percent
6. First Round Capital
First Round invested in Uber in 2010, back when it was called UberCab.
Post-IPO stake: $1.7 billion
Post-IPO ownership: 2.2 percent
5. Lowercase Capital
Founder Chris Sacca invested roughly $300,000 in Uber's angel round in 2009.
Post-IPO stake: $1.9 billion
Post-IPO ownership: 2.5 percent
4. Garrett Camp
The Uber co-founder's shares are listed under his non-traditional VC firm, Expa, an early investment firm. Garrett's situation is the best because nobody knows who he is and he's rich as heck. No negative Uber PR blows onto Garrett, unlike with Travis Kalanick, who is no longer there.
Post-IPO stake: $3.5 billion
Post-IPO ownership: 4.6 percent
3. Travis Kalanick
The former Uber CEO has already sold about $1 billion worth of shares to SoftBank. Travis stepped down shortly after the sexual harassment and firm culture issues surfaced in 2016.
Post-IPO stake: $5.1 billion
Post-IPO ownership: 6.7 percent
2. Benchmark Capital
The VC firm was another one of Uber's earliest investors. Partner Matt Cohler sits on Uber's board. Matt was an early Facebook employee. He owns a $50 million mansion out in Tiburon.
Post-IPO stake: $6.5 billion
Post-IPO ownership: 8.5 percent
1. SoftBank
The Japanese investing conglomerate claims it has already made more than $3.8 billion from its Uber investment. Unfortunately, the shares have seen significant pressure post Uber's IPO given the poor performance of Uber stock. Masayoshison, the founder of Softbank, owns a $100+ million mansion south of San Francisco. I actually used his same landscapers for my house!
Post-IPO stake: $9.8 billion
Post-IPO ownership: 12.8 percent
Uber Made Large Shareholders Rich
Dara Khosrowshahi, Uber's CEO, also stands to gain a tremendous fortune with a pay package estimated to be worth over $250 million over four years. Not bad for a guy who basically just acts as an ambassador and gives interviews.
Despite all the problems Uber has faced since its founding in March, 2009, Uber is one of the biggest entrepreneurial success stories in the world for early investors and employees.
For employees who joined after 2015, it's been a more ordinary ride since employees were paid below market salary in lieu of potential stock riches. With the Uber IPO not doing too well, employees need to really stick it out for the long term and delivery on its growth and financial targets.
For those looking to build great wealth over time, there are no shortcuts. The largest Uber shareholders made big bets and held on for years.
For those who are looking to build their net worth, I recommend staying on top of your finances with a free financial tool like Personal Capital. It's important to monitor your net worth and your investments.
I also think it's good to diversify your wealth beyond your company stock. Invest in the S&P 500 index, own your primary residence, and look into real estate crowdfunding, my favorite way to invest over the next decade. I've personally invested over $800,000 in real estate crowdfunding to take advantage of lower valuations and higher net rental yields in the heartland of America.
About the Author: Sam worked in investing banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income, most recently helped by Fundrise. He spends most of his time playing tennis and taking care of his family. Financial Samurai was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.