The only VC with an investment in Microsoft was David Marquardt's Technology Venture Investors. At the IPO, TVI owned 6.1% of Microsoft.

The remaining 93.9% belonged to the founders, the Board, the employees, and friends and family. Everyone listed on the S-1, with one exception, took a bit off the top but held on to most of their shares.

The one exception was Bill Gates's sister's trust fund, which owned 20,000 shares -- 0.1% of the company. She could've been a hundred-millionaire if she'd held on to it, but her trustee sold it for $400,000 and moved on.

Microsoft had so much cash lying around they were using t-bills (or some other kind of bond) as bookmarks (don't remember which Gates bio I read that in -- Hard Drive maybe). When Microsoft IPOed it was basically owned by its founders. It never wanted for cash.