Subject: RE: Lyft Funding Official: Documents Filed for New $150 Million Round | Re/code
From: "Neil Callahan \(Rosemont Seneca\)" <[email-masked]>
To: "'William Lee'" <[email-masked]>, "'John DeLoche'" <[email-masked]>, "'Devon Archer'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Rob Walker'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>
Date: Sun, 9 Mar 2014 10:48:39 -0400

Yup, once this deal closes it will be a two horse race with two companies
with massive war chests transforming a market with no going back.

With $600m invested in the space and Uber having ½ that investment to date
$300m – both companies will benefit from each other’s efforts in terms of
market awareness, regulatory progress, etc.  It’ll be at&t and Verizon and
they will suck all the oxygen out of the room for the smaller players.  So
valuation is not that important – locking up the market with only 2 players
is what is important, then it’s divide and conquer to own then entire
market.

Neil Callahan

152 West 57th, 47th Floor

New York, NY 10019

212-933-9965 (o)

917-945-9516 (m)

866-749-8879 (f)

www.rstp.com <http://www.rstp.com/> 

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From: William Lee [mailto:[email-masked]] 
Sent: Sunday, March 09, 2014 10:33 AM
To: Neil Callahan; John DeLoche; Devon Archer; Hunter Biden; Rob Walker;
Eric Schwerin
Subject: Re: Lyft Funding Official: Documents Filed for New $150 Million
Round | Re/code

 

Interesting excerpts:

"The round is supposed to give Lyft a pre-money valuation of $700 million, a
source said, which is much lower than some familiar with the transaction had
expected."

The RSTP base case discounts the management growth rate by 40% which
discounts their revenue by 50%, 69% and 77%  in 2014E, 2015E and 2016E.
With a 77% discount to their projection, RSTP’s base case could still
achieve a 3.2x return on a 2016 IPO using an average multiple for high
growth internet companies.

There is a lot of buzz around this deal.  

"No investors were named in the filing, but several sources said that
private equity firm Coatue Management, among others, have been in advanced
talks with Lyft.”

There is a lot of buzz around this deal.  This deal could also put RSTP on
the press.

-Will

William Lee, Managing Director
Rosemont Seneca Technology Partners (RSTP)
333 Bush Street, 21st Floor
San Francisco, California 94104
Office: 415.767.1289
Mobile: 617.407.5958

www.rstp.com

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On Mar 9, 2014, at 6:48 AM, Neil Callahan <[email-masked]>
wrote:

http://recode.net/2014/03/08/lyft-funding-official-documents-filed-for-150m-
round/

--------------------
Neil Callahan
Rosemont Seneca
917-945-9516