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Tableau Software raises IPO stakes

May 15, 2013: 1:47 PM ET

tableauTableau's venture capital backers getting ready for a monster return.

FORTUNE -- Tableau Software today increased the price range of its pending IPO to between $28 and $30 per share, meaning that it could raise upwards of $216 million when it prices tomorrow night. It had originally planned to price at between $23 and $26 per share.

And no one is happier about the bump than venture capital firm New Enterprise Associates, which stands to generate a 20x return on its investment.

NEA originally invested $5 million into the Seattle-based data visualization company nine years ago at just 47 cents per share. It pumped in another $10 million in 2008 at $2.29 per share.

Then, in 2010, NEA and Meritech Capital Partners launched a tender offer for at around $5.90 per share. NEA purchased another $14.2 million worth of Tableau stock, while Meritech invested $17.8 million.

If Tableau (DATA) prices at $30 per share, NEA's aggregate investment of $29.2 million would be worth around $588 million -- which is around a 20x return. Most of that would be on paper since NEA only is selling around 5% of its position in the IPO, but it also doesn't include the possibility of Tableau pricing higher and/or experiencing a first-day listing pop on Friday. And if most recent enterprise software IPOs are any guide -- particularly ones led by Goldman Sachs (GS) -- then both bumps are a pretty good bet.

Meritech would experience a 5.6x multiple on its investment at $30 per share, with its $17.8 million investment valued at around $99.4 million. It is not planning to sell any shares in the IPO.

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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