Kevin Durant's $250,000 investment in Hugging Face is said to be valued at $60 million.
Kevin Durant and his business associate invested $250,000 in Hugging Face’s early financing rounds, and his potential payout could be around $60 million if Nvidia's acquisition valued at $12.9 billion is finalized. Employees at late-stage European startups typically hold about 10% of their companies, compared to 20% in the United States.
Durant's $250,000 investment in Hugging Face might yield him approximately $60 million. This estimate, reported by Front Office Sports, depends on the completion of Nvidia's acquisition.
The disparity in ownership percentages is noteworthy anywhere. For context, under his current contract, $250,000 represents just over two days’ worth of Durant's basketball salary.
His history in investments explains the lack of surprise. His firm, Thirty Five Ventures, which he operates with Rich Kleiman, has been an investor in Postmates, Coinbase, Acorns, Robinhood, DraftKings, and Whoop.
The company he invested in, Hugging Face, has French origins, founded by three French individuals, and Nvidia's reported acquisition offer is for $12.9 billion.
This leads to the consideration of compensation for others involved. An exit of this magnitude reveals the true value of employees' share options.
In Europe, the typical response is often lower. According to Index Ventures, employees at late-stage European startups possess around 10% of the equity they help build, while in the United States, that figure is around 20%. This gap has been a focus for years to try to bridge.
The equity distribution begins similarly but then diverges. Both regions start at approximately 10% during the seed stage. However, American firms aim for around 15% by Series A and between 20% to 25% by Series D, while European firms tend to level off.
The distribution also shows some bias. In Europe, two-thirds of option grants go to executives, with only a third allocated to other employees, which is the opposite of the American system.
Brussels has taken note. Last year’s Startup and Scaleup Strategy highlighted the need for improved employee stock options alongside visas and cross-border hiring under its talent framework.
However, a strategy is distinct from a tax code. The treatment of options is determined on a national level, which leads to discrepancies in compensation for similar roles at the same stage in Paris, Berlin, or Stockholm.
Thus, it’s essential to consider the calculations rather than dismissing them. While one check from a basketball player may yield a 240-fold return, the software developers navigating 27 different regulations face a different reality.
This situation isn’t a concern for Durant. He was an early investor who made the right call, while Europe has spent the last decade acknowledging that its own engineers deserve similar opportunities.
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Kevin Durant's $250,000 investment in Hugging Face is said to be valued at $60 million.
Kevin Durant invested $250,000 in Hugging Face and could potentially earn $60 million if Nvidia acquires the company. The European employees own half of what their American counterparts would.
