How to become a billionaire – leaked DST document reveals secrets of Yuri Milner’s colossal internet success

milner money

Over the past two and a half years, DST has sunk nearly $3bn into its various ventures, to become one of the most important global internet investors and catapulting Milner to superstar status in the financial world.

So how have the DST “Billion-dollar Babies” performed since investment from the company? Our leaked documents reveal the full Case Studies of the social-media leviathans that have made Yuri his millions:

Over the past two and a half years, DST has sunk nearly $3bn into its various ventures, to become one of the most important global internet investors and catapulting Milner to superstar status in the financial world. So how have the DST “Billion-dollar Babies” performed since investment from the company? Our leaked documents reveal the full Case Studies of the social-media leviathans that have made Yuri his millions: Facebook – $900m DST first invested in Facebook in May 2009 “with a strong belief that Facebook was “on track to become the global #1 website under the vision and leadership of Mark Zuckerberg”. It subsequently snapped up every Facebook common share traded from September 2009 to February 2010, before investing an additional $125m in a single $1.5bn round with Goldman Sachs. Facebook now has 800m active users and is #1 globally in terms of time spent and page views, with a staggering 4 billion pieces of content shared every day. Twitter – $382.3m Described in the slides as “one of the highest-growth pre-IPO internet companies of scale globally”, DST led up an investment round of $800m in Twitter with a sum of $400m in July 2011. Twitter is now a category leader with over 100 million active monthly users and 230 million $daily Tweets, making it the biggest source of real-time information. Groupon – $150m DST first invested $100m in Groupon in April 2010, with a further $50m as part of a $950 primary and secondary investment round, attracted by what it calls “a simple, scalable business model” that “reinvented local advertising”. Zynga – $106m DST sank $106m into the company at the end of 2009 at a $3.9bn valuation. Zynga is the #1 social gaming developer in the world, with over 230m monthly active users. Spotify – $37.5m DST invested $37.5m in a highly competitive $110m round in June 2011 after realising the disruptive potential of Spotify with “strong product offering” and freemium model. Airbnb – $36.7m DST invested this sum in primary and secondary rounds in July 2011, recognising the potential in the Berlin company’s peer-to-peer accommodation model. In 2011, Airbnb had over 100,000 listings in 16,000 cities across 186 countries.

Facebook – $900m

DST first invested in Facebook in May 2009 “with a strong belief that Facebook was “on track to become the global #1 website under the vision and leadership of Mark Zuckerberg”. It subsequently snapped up every Facebook common share traded from September 2009 to February 2010, before investing an additional $125m in a single $1.5bn round with Goldman Sachs for a pre-money valuation of $50.2bn.

Facebook now has 800m active users and is #1 globally in terms of time spent and page views, with a staggering 4 billion pieces of content shared every day.

  • Received shares (incomplete) 4.54% (DSTG I), 0.24% (DSTG II)
  • Share value today $3.4bn ($490 million; DSTG I), $ 179.4 million ($125 million; DSTG II)
  • Gross Multiple 1.1x (DSTG I) 1.05x (DSTG II), 7.11x (Co-Invest)

twitterTwitter – $382.3m

Described in the slides as “one of the highest-growth pre-IPO internet companies of scale globally”, DST was given the opportunity to invest up to $400m of an $800m primary and secondary round in July 2011.

As a lead investor DST participated in a secondary round July 2011 on its second fund with $160.3m at a valuation of $8.4bn . DST will have invested $222md as a co-investor.

Twitter is now a category leader with over 100 million active monthly users and $230 million daily Tweets, making it the biggest source of real-time information.

  • Received shares 1.91% (DSTG II), 2.64% (Co-Invest)
  • Share value today $160.3m ($160.3m; DSTG II), $222m ($222m, Co-Invest)
  • Gross multiple 1x (DSTG II), 1 (Co-Invest)

grouponGroupon – $150m

DST first invested $100m in Groupon in April 2010, at a valuation of $1.365bn, with a further $50m as part of a $950 primary and secondary investment round at a post-money valuation of $4.9bn, attracted by what it calls “a simple, scalable business model” that “reinvented local advertising”.

  • Received shares 1.47% (DSTG I), 1.02% (DSTG II)
  • Share value today $ 216.2 million ($ 25 million; DSTG I), $ 150 million ($ 50 million; DSTG II)
  • Gross multiple 8.6x (DSTG I), 3x (DSTG II)

Zynga1Zynga – $106m

DST sank $106m into the company at the end of 2009 at a $3.9bn valuation. Zynga is the #1 social gaming developer in the world, with over 230m monthly active users.

  • Received shares 2.72%
  • Share value today $241.9 million ($106 million)
  • Gross multiple 2.3x

spotifySpotify – $37.5m

DST invested $37.5m in a highly competitive $110m round in June 2011 after a post-money valuation of $1.1bn, along with Accel Partners, Kleiner Perkins Caufield & Buyers and existing Spotify investors .

  • Received shares 3.41%
  • Share value today $37.5 million ($37.5 million)
  • Gross multiple 1x

airbnbAirbnb – $36.7m

DST invested this sum in primary and secondary rounds in July 2011, with $36.7m for a $1.3-billion post-money valuation, after recognising the potential in the company’s peer-to-peer accommodation model. In 2011, Airbnb had over 100,000 listings in 16,000 cities across 186 countries.

  • Received shares 2.82%
  • Share value today $ 36.7 million ($ 36.7 million)
  • Gross multiple 1x

The Full DST Track Record

DST invests

For a full German version of this report, plus added visuals, visit our sister site, Gruenderszene...

[title]The billion-dollar babies – DST's full investment track record to date[/title]

Image credit: mansion – flickr user Atwater Village Newbie

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