Authorization

Investors explain how Okta's $6.5 billion acquisition of Auth0 turned Bessemer's $95 million investment into a $1.3 billion stake

Investors explain how Okta's $6.5 billion acquisition of Auth0 turned Bessemer's $95 million investment into a $1.3 billion stake

Bessemer Ventures partner David Cowan
Steve Jennings/Getty Images for TechCrunch




On Wednesday, Okta announced plans to buy Auth0 for $6.5 billion in stock.




That marked a 240x return on Bessemer's seed investment in Auth0.




The firm invested $1 million in the seed round and ultimately held a 20% stake in the company.




Read more on the Insider homepage.


Former Bessemer investor Sunil Nagaraj was in the middle of making a presentation when he started receiving a flood of messages. "I finished my presentation, glanced at my email, and I saw a bunch of congrats emails. My heart skipped a beat - I said, 'Oh my God, what happened?" Nagaraj told Insider. "I looked at the news and my jaw hit the ground."On Wednesday, identity management firm Okta announced plans to buy cybersecurity startup Auth0 for $6.5 billion in stock - which represented a whopping 240x return on the seed investment that Bessemer Venture Partners made in 2014 when Nagaraj was an investor there (he left in 2017 to found his own firm, called Ubiquity Ventures). All in, Bessemer invested just under $95 million into Auth0 which translated to a payoff of more than $1 billion.
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