Mashery Sale Looks Promising for First Round, Formative, OpenView, Others: Updated

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In what appears to be a win for several venture firms, API management company Mashery has agreed to sell itself to Intel, as first reported by Read Write Web and subsequently confirmed by other media outlets.

The sales price was not disclosed, but TechCrunch is reporting that a “source” says Intel will pay “more than $180 million.” RWW speculated that Intel would pay in the range of $120 million to $180 million.

If the price is north of $100 million, then the sale will produce a good outcome for Mashery’s investors.

The company, founded in 2006, has raised $32.45 million from .406 Ventures, Cisco Systems, First Round Capital, Formative Ventures, OpenView Venture Partners and SoftTech VC, according to Thomson Reuters (publisher of peHUB).

Update:  Jeff Clavier, managing partner of SoftTech VC, told peHUB via email: “While we never comment on our performance, I’ll say that Mashery is one of our best cash on cash multiples given how early we committed to Oren [Michels, co-founder and CEO of Mashery].”

Clavier added: “Mashery was a Fund I investment – which I closed on 6/6/6 ;-). As an angel investor at the time, I backed Oren Michels, who I had met when he joined Feedster as VP Engineering (another of my investments that did not turn out great). I was impressed by Oren and when he came to see me pitching Mashery, explaining that the world was going to dearly need an API management layer, I thought it was a stretch yet it was a compelling vision, and so I committed to the seed round as investor #2 – #1 being my dear friend [First Round founder and Partner] Josh Kopelman.”

Mashery’s most recent round was in May 2012, when it raised $10 million at an undisclosed valuation from lead investor OpenView and Cisco, First Round, Formative and .406, Thomson Reuters reports.

About one year earlier, OpenView led an $11 million round with a post-money valuation of $50.96 million, according to Thomson Reuters. The other participants in the round were Cisco, First Round, Formative and .406.

First Round, SoftTech and Dave McClure, founder of 500 Startups, seeded Mashery with an undisclosed amount in June 2006, then First Round invested $700,000 in a Series A in January 2007, according to Thomson Reuters.

OpenView founder Scott Maxwell and Formative Ventures co-founder Clint Chao comprise half of Mashery’s board of directors.

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