Square’s newly revealed IPO filing shows that co-founder and CEO Jack Dorsey is the largest shareholder, owning 24.4 percent of the company.
Square last raised capital at a $6 billion valuation, implying that Dorsey’s stake is worth at least $1.46 billion. We will get a better sense of what Square’s value as a public company is when its expected share price range is revealed in the coming weeks.
Co-founder and director Jim McKelvey has a much smaller stake than Dorsey, owning just 9.4 percent of the company, last valued at $564 million. While notably less than Dorsey, it is still a greater percentage than Box CEO Aaron Levie, whose 5.7 percent stake was considered low for an active founder.
Square also has a long list of Silicon Valley investors, having raised about $600 million in funding. Khosla Ventures has by far the biggest stake for a venture capital firm, owning 17.3 percent, or roughly $1 billion. Vinod Khosla is on Square’s board of directors.
JPMC Strategic Investments, or JP Morgan, has significant ownership, at 5.5 percent. Sequoia Capital and Rizvi Traverse, each have 5.4 percent equity.
BuzzFeed also noticed a provision, called a ratchet, in the S-1 that could give some investors even more. Some of its biggest backers have been promised a 20 percent gain when the IPO prices. If it’s below $18.56, they will get issued shares to make up for the discrepancy.