Unity Stock Surges On First Day Of Trading 


This post is by Sophia Kunthara from Crunchbase News

Video game software development company Unity started trading at $75 on Friday, 44 percent above its IPO price.

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The company raised $1.3 billion in its initial public offering by selling 25 million shares at $52 each. The $52 price was above the range of $44 to $48 that the company had set after initially setting a price range of between $34 and $42 per share.

Unity, which is trading on the New York Stock Exchange under the ticker U, has raised at least $1.3 billion in funding from investors including Altimeter Capital and Sequoia Capital. Among the biggest winners in the IPO are Sequoia Capital, Silver Lake Partners and JA Technologies ApS.

The cross-platform game engine gets credit for being behind popular games like Pokemon Go. The company, which is based in San Francisco, reported $351.3 million in revenue for the first half of 2020, up from $252.8 million during the same period the year prior. Its losses also went down from $67 million in the first half of 2019 to $54 million during the first half of 2020.

Unity closes out a busy IPO week. Companies including JFrog, Sumo Logic and Snowflake all went public, with Snowflake ending up as the largest software IPO ever

Illustration: Li-Anne Dias

Sumo Logic Opens First Day 21 Percent Above IPO Price 


This post is by Sophia Kunthara from Crunchbase News

Sumo Logic’s stock opened at $26.64 on its first day of trading, 21 percent above its IPO price.

The cloud management software company set its IPO price at $22 per share on Wednesday, after setting a range of between $17 and $21. 

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At $22 per share, Sumo Logic raised about $326 million through its IPO. Among the biggest winners in the IPO are Greylock Ventures, Sapphire Ventures, Accel, IVP, and DFJ.

Sumo Logic raised at least $340 million in funding as a private company, most recently with a $110 million Series G round in May 2019.

The company is one of several to go public this week and next week. And while IPOs as of late have been criticized for being mispriced and having large pops on the first day (like more than 100 percent higher than the IPO price), Sumo Logic’s first day pop seems far more in line with its pricing. 

We’ll be chatting with Sumo Logic CEO Ramin Sayar later today, and will update this story with commentary.

Illustration: Li-Anne Dias

Tonal Lands $110M, Investors Include Steph Curry and Bobby Wagner


This post is by Sophia Kunthara from Crunchbase News

Connected fitness startup Tonal has raised $110 million in a new round of funding, the company announced Thursday, bringing in several high-profile athletes as investors.

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L Catterton, which led Tonal’s $45 million Series C in April 2019, returned to invest in the round, which included new investors Delta-v Capital, Mousse Partners and the Amazon Alexa Fund. Several high-profile athletes also invested in the Series D round, including the Golden State Warriors’ Stephen Curry, the Seattle Seahawks’ Bobby Wagner, the LA Clippers’ Paul George, and professional golfer Michelle Wie.

Tonal is a smart home gym designed for strength training. It offers digital weights that can replicate up to 200 pounds of resistance and uses artificial intelligence to help train users to strength train properly.

“The really powerful thing about strength training is that there’s a lot you can do with it,” CEO Aly Orady said in an interview with Crunchbase News, noting it can be used for weight loss, building muscle, etc.

With the new funding, the company plans to invest in marketing, brand awareness and scaling its infrastructure, along with creating better content for the Tonal system, he said.

Brand awareness of Tonal has spread a lot by word-of-mouth, Orady said, with many coaches and trainers in the NBA bubble in Orlando requesting Tonal. He estimates about half the teams in the bubble are using Tonal to train players.

Golden State Warriors player Steph Curry bought Tonal off the company’s website using a pseudonym around two years ago, Orady noted. But after the COVID-19 pandemic took hold, he began using it to train at home, and wanted to invest in the company.

Founded in 2015, the company has seen demand increase during the pandemic, as many gyms have temporarily closed and people have opted to work out at home. Tonal has seen its sales increase 12 times compared to last year’s figures, according to a statement from the company.

As part of its marketing strategy, Tonal has established a retail presence in 15 markets across the U.S. because, as Orady put it, “it’s something that people need to touch.”

More than 20 professional athletes have invested in the company, including Serena Williams, Klay Thompson and Tony Gonzalez. The San Antonio Spurs’ Rudy Gay and the Minnesota Vikings’ Kyle Rudolph have also recently joined Tonal as investors.

Based in San Francisco, the company has offices in  Los Angeles, Toronto and Taiwan.

Image Credit: Li-Anne Dias

These Were The Biggest Winners in Snowflake’s Record-Busting IPO


This post is by Sophia Kunthara from Crunchbase News

Data warehousing company Snowflake went public on Wednesday in the largest software IPO ever, raising nearly $3.4 billion and valuing the company at $33.2 billion.

Its stock opened at $245 on Wednesday during its public market debut, about 104 percent above its IPO price. At the opening price of $245 per share, the company’s valuation reached nearly $68 billion.

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“Obviously it’s tremendous validation for the movement of companies of all sizes and all industries, to the cloud,” Sigma Computing co-founder Rob Woollen said on Wednesday after Snowflake’s debut. Woollen was an entrepreneur-in-residence at Sutter Hill Ventures, which led Snowflake’s Series A round, and saw the company do one of its early fundraising presentations. He later co-founded the data analytics company Sigma Computing, and built the company to leverage Snowflake’s platform.

That appetite for cloud-native data infrastructure is also validation for the early bets by the investors who backed Snowflake.

Here are some of the biggest winners in the historic IPO.

Sutter Hill Ventures

Palo Alto, California-based Sutter Hill Ventures led Snowflake’s $5 million Series A in August 2012, betting early on cloud-based data infrastructure. It was also involved early on in Snowflake through its managing director, Michael Speiser, who served as Snowflake’s CEO and CFO from August 2012 through June 2014, according to the company’s S-1.

That bet is now paying off big time–the firm owns 49,564,848 shares of Snowflake’s Class B common stock, or 17.4 percent. At Snowflake’s IPO price of $120 per share, Sutter Hill Ventures’ stake in the company comes out to $5.9 billion. When the company’s stock opened at $245 on Wednesday, it pushed Sutter Hill Ventures’ stake past the $12 billion mark.

Altimeter Capital

Altimeter Capital came in as the lead investor for Snowflake’s $79 million Series C in June 2015, according to Crunchbase. It’s the VC firm with the second-largest stake in the company, with Altimeter Partners Fund LP owning 36,286,307 shares of Class B common stock. That chunk comes out to nearly $4.4 billion at the IPO price of $120. 

ICONIQ Capital

ICONIQ Capital led Snowflake’s $105 million Series D in September 2017. The firm holds 14 percent of Snowflake’s Class B common stock, or 33,752,048 shares. The IPO price of $120 gives ICONIQ a more than $4 billion stake in the company.

Redpoint Ventures 

Menlo Park, California-based Redpoint Ventures also got in early on Snowflake. The firm led the $26 million Series B in October 2014, and now owns 21,928,585 shares of Class B common stock, or a little over 9 percent. At $120 per share, that comes out to $2.6 billion. 

Sequoia Capital

Sequoia Capital invested in Snowflake relatively late, leading its $450 million Series F in October 2018. That gave it 20,619,156 shares of Class B common stock, or around 8.6 percent. That still comes out to a nearly $2.5 billion stake in the company.

Illustration: Li-Anne Dias

JFrog Stock Pops On First Day Of Trading


This post is by Sophia Kunthara from Crunchbase News

DevOps platform JFrog’s stock opened at $71.27 on Wednesday, nearly 62 percent above its IPO price.

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The company priced its shares at $44 on Tuesday, above the range it had set, and raised about $352 million in its IPO. The company initially set its price range to between $33 and $37 per share before raising it to between $39 and $41.

At $44 apiece, the company was valued at around $4 billion.

JFrog, which is based in Sunnyvale, California, reported $69.3 million in revenue for the first six months of this year, up about 50 percent year over year. Its losses came in at $426,000 for the first half of 2020, down 79 percent year over year.

Founded in 2008, JFrog has raised at least $226.5 million in funding from investors including Scale Venture Partners and Sapphire Ventures. Some of the largest shareholders in the company include those firms, plus Gemini Israel Ventures, Insight Partners and Dell Inc.

We’ll chat with JFrog co-founder and CTO Yoav Landman later today, and will update this story with comments.

Illustration: Li-Anne Dias

Devo Technology Raises $60M Series D


This post is by Sophia Kunthara from Crunchbase News

Data analytics and security company Devo Technology has landed $60 million for its Series D round, the company announced Tuesday.

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Along with the funding news, the company announced that former LogMeIn COO Marc van Zadelhoff will join the Cambridge, Massachusetts-based company as its new CEO. Van Zadelhoff joined Devo’s board of directors in August, and now-former CEO Walter Scott will become chairman of the company’s board.

The new round was led by Georgian, with Bessemer Venture Partners and Insight Partners also participating in the round, according to a statement from the company.

The new funding will be used to grow “all parts of the business,” van Zadelhoff said in an interview with Crunchbase News. The company will be expanding teams including sales, marketing, and engineering.

Devo had a year-over-year revenue growth rate of about 80 percent for the first half of 2020, van Zadelhoff said, and wants to maintain that as it scales. The company plans on growing its employee base by at least 25 percent by the end of the year, including through building out its team in Europe.

Van Zadelhoff has been working in security for more than 20 years, and pointed to the importance of log management–especially cloud-based log management–in the age of COVID-19.

“If you don’t collect logs and interpret them and ingest them and interpret them, you don’t know what’s happening with your business, you have no visibility,” van Zadelhoff said. 

The company recently introduced a security function on top of its core platform, and expects to “double down” on that in the near future. Devo also is planning on a couple more releases of the security operation function, van Zadelhoff said.

Founded in 2011, Devo last raised money in 2018 with its $25 million Series C led by Insight Partners, per Crunchbase. 

Illustration: Li-Anne Dias

Here’s What You Need To Know About Snowflake And Its Giant IPO


This post is by Sophia Kunthara from Crunchbase News

Data warehouse company Snowflake is set to start trading on the public markets on Wednesday in what’s expected to be the largest software IPO ever, according to Renaissance Capital.

Though it’s not necessarily a household name (it happens when you’re B2B software), Snowflake is a big deal. It’s a fast-growing company that’s well-capitalized and poised to be valued at more than $30.5 billion when it goes public. 

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We’ll be keeping an eye on the market when San Mateo-based Snowflake starts trading on the New York Stock Exchange on Wednesday, but until then, here’s what you need to know about the buzzy software company.

What It Does

In short, Snowflake is a cloud data platform. Customers can store data, exchange it, use it for data applications, and data engineering, among other things. 

In Snowflake’s own words, from its S-1 filing:

“Our platform solves the decades-old problem of data silos and data governance. Leveraging the elasticity and performance of the public cloud, our platform enables customers to unify and query data to support a wide variety of use cases. It also provides frictionless and governed data access so users can securely share data inside and outside of their organizations, generally without copying or moving the underlying data. As a result, customers can blend existing data with new data for broader context, augment data science efforts, or create new monetization streams. Delivered as a service, our platform requires near-zero maintenance, enabling customers to focus on deriving value from their data rather than managing infrastructure.”

Venture Capital Investment In Snowflake

As a private company, Snowflake has raised at least $1.4 billion in funding from investors including Sequoia Capital and Sutter Hill Ventures. The company last raised funding with a $479 million Series G round led by Dragoneer Investment Group. That round basically tripled the company’s valuation, bringing it to $12.4 billion. 

Take a look back at the company’s funding and valuation history here:

Growth

In its S-1 filing with the United States Securities and Exchange Commission, Snowflake reported around $242 million in revenue for the six months that ended on July 31, 2020. That means revenue grew about 133 percent from the same period last year, when it came up with about $104 million in revenue.

The company reported $171 million in net losses for the six months ending on July 31, 2020. It lost $177 million during the same period in 2019, so losses have decreased year-over-year.

Translation: Snowflake is growing fast and getting its losses under control. Growing 133 percent year-over-year when you’re a company the size of Snowflake is no small feat, and says something about the appetite for the cloud data platform. The company had 3,117 customers as of July 31.

The Winners

Early investors in the company will win big with the historic IPO. Among the biggest beneficiaries: 

Here’s a breakdown of how many shares each currently owns:

  • Sutter Hill Ventures: 49,564,848 shares (17.4 percent) of Class B common stock
  • Altimeter Capital: 36,286,307 shares (15.1 percent) of Class B common stock
  • Iconiq Capital: 33,752,048 shares (14 percent) of Class B common stock
  • Redpoint Ventures: 21,928,585 shares (9.1 percent) of Class B common stock
  • Sequoia Capital: 20,619,156 shares (8.6 percent) of Class B common stock

Compared To Other IPOs…

Snowflake is huge. According to Renaissance Capital, Snowflake is expected to be the largest software IPO of all time.

The company initially set its price range between $75 and $85 per share. It then raised the range to be between $100 and $110 per share. If the company prices at the top of the range, it would value Snowflake around $30.5 billion.

Translation: For context, that’s much, much larger than the IPO valuations of any of the venture-backed tech or tech-ish companies that have gone public this year. Crunchbase News keeps a running list of venture-backed tech and tech-ish companies that go public via IPO, and so far ZoomInfo topped the list in terms of highest IPO valuation. ZoomInfo had an IPO valuation of $8.2 billion when it went public in June — if Snowflake prices at the top of its range, its IPO valuation will be more than three times that of ZoomInfo. 

There are several tech companies going public this week and next week, but in valuation alone, Snowflake stands out.

Illustration: Dom Guzman

Opendoor To Go Public Through SPAC


This post is by Sophia Kunthara from Crunchbase News

Online real estate company Opendoor is going public through a merger with a blank check company, it announced Tuesday.

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Chamath Palihapitiya’s special purpose acquisition company, Social Capital Hedosophia, will acquire the company in its capacity as a SPAC–a blank check company that was formed and taken public with the intention of acquiring another company. 

The deal is expected to create up to $1 billion in cash proceeds and value Opendoor at about $4.8 billion, according to a statement from the companies. The $1 billion figure includes a fully committed private investment in public equity of $600 million and up to $414 million of cash that is in Social Capital Hedosophia’s trust.

Opendoor, which was founded in 2014 in San Francisco, makes it easier to buy and sell a home. The company has raised at least $1.5 billion in funding from investors including General Atlantic, Norwest Venture Partners and the Softbank Vision Fund.

“We created the IPO 2.0 platform to identify and partner with iconic technology companies with proven management teams and assist in their transition to the public markets. Opendoor perfectly embodies this vision,” Palihapitiya said in a statement. “The company is transforming the $1.6 trillion residential real estate market by combining a superior user experience, streamlined operations and machine learning to create a seamless digital experience.”

SPACs are having a record year in 2020, with more than $38 million raised by SPACs to date, according to SPAC Insider, and big companies like DraftKings and Nikola Corp. choosing to go public by merging with a SPAC. Opendoor isn’t Palihapitiya’s first rodeo when it comes to SPACs, however. He and his company helped take Virgin Galactic public through a SPAC last year.

Opendoor is currently available in 21 markets across the U.S., including Phoenix, Dallas and Atlanta.

Illustration: Dom Guzman

Airtable Lands $185M Series D


This post is curated by Keith Teare. It was written by Sophia Kunthara. The original is [linked here]

Airtable CEO Howie Liu will be speaking at TechCrunch Disrupt at 12:25 p.m. PST. We will be tuning in and update this piece with any relevant comments. 

Project management software company Airtable has landed $185 million in a new round of funding, bringing its valuation to $2.5 billion.

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Thrive Capital led the Series D round, with participation from existing investors Benchmark, Coatue, Caffeinated Capital and CRV, according to a company spokeswoman. D1 Capital also participated in the round as a new investor.

Airtable makes it easy to plan events, projects or product development by helping teams keep track of timelines and workflows. The company, which was founded in 2012, last raised money with a $100 million Series C in November 2018, which gave it a valuation of about $1.1 billion, per Crunchbase.

Along with the new funding, Airtable announced Airtable Apps, a new platform to create custom applications, Airtable Automations to automate work in the platform, and Airtable Sync so users can better collaborate.

Airtable is based in San Francisco.

Illustration: Li-Anne Dias

Airtable Lands $185M Series D


This post is by Sophia Kunthara from Crunchbase News

Airtable CEO Howie Liu will be speaking at TechCrunch Disrupt at 12:25 p.m. PST. We will be tuning in and update this piece with any relevant comments. 

Project management software company Airtable has landed $185 million in a new round of funding, bringing its valuation to $2.5 billion.

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Thrive Capital led the Series D round, with participation from existing investors Benchmark, Coatue, Caffeinated Capital and CRV, according to a company spokeswoman. D1 Capital also participated in the round as a new investor.

Airtable makes it easy to plan events, projects or product development by helping teams keep track of timelines and workflows. The company, which was founded in 2012, last raised money with a $100 million Series C in November 2018, which gave it a valuation of about $1.1 billion, per Crunchbase.

Along with the new funding, Airtable announced Airtable Apps, a new platform to create custom applications, Airtable Automations to automate work in the platform, and Airtable Sync so users can better collaborate.

Airtable is based in San Francisco.

Illustration: Li-Anne Dias

2020 Is The Year Of The SPAC


This post is by Sophia Kunthara from Crunchbase News

If direct listings were the most-talked about way to go public in 2019, SPACs are the new direct listings.

Special purpose acquisition companies (SPACs) have been popping up in SEC filings left, right, and center, with high-profile names often attached to them: venture capitalist Chamath Palihapitiya, former Speaker of the House Paul Ryan and LinkedIn co-founder Reid Hoffman have all launched these “blank-check” companies.

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And a few high-profile SPACs have shown investors and companies that there are other, simpler ways to go public rather than a traditional IPO, especially during uncertain times like the COVID-19 pandemic.

This has been a record year for SPACs, according to SPAC Insider, with nearly $36.2 billion in SPAC gross proceeds so far. That’s far higher than the $13.6 billion in gross proceeds for SPACs in 2019 or the $10.8 billion in 2018, per SPAC Insider.

What is a SPAC?

SPACs are essentially blank-check companies. SPAC founders form the company and go out and raise a few hundred million dollars through an IPO, with the intent of buying another company with the money they have raised.

A private company going public via SPAC has a few advantages over a traditional IPO, according to Benjamin Kwasnick, founder of SPAC Research. Private companies can go public on a faster timeline and there’s more certainty around a company’s valuation and equity capital raised, Kwasnick said in an email to Crunchbase News.

“A group of very successful deals over the past year have shown operating companies that listing via SPAC can solve a number of problems at once and be a great way to tell their story to the public market,” Kwasnick said. “Great deals have brought in higher quality sponsors who in turn are strong candidates to source and finance their own high quality transactions.”

Virgin Galactic, DraftKings, and Nikola Motor Company all went public through SPAC, meaning they were acquired by a blank-check company. The reputation of SPACs has improved over the decades as governance practices have also improved and made them more shareholder friendly. For example, shareholders are now able to vote either in favor of or against a deal and still ask for their cash back.

“SPACs have grown up over the past few decades, as improved governance and great sponsors have made the SPAC listing a route that any company considering accessing the public markets is taking seriously in 2020,” Kwasnick said.

Why are IPOs Under Scrutiny?

SPAC Insider is a data and analysis firm founded by Kristi Marvin, who previously worked as a banker on these types of deals.

“The traditional IPO process is inherently risky, plus there had been a lot of talk particularly in the venture community not being satisfied with the IPO process,” Marvin said in an interview with Crunchbase News.

That’s led to conversations about going the direct listing route, and now the SPAC route.

Traditional IPOs have faced scrutiny lately mostly because of how they’re priced. Traditional IPOs are how many companies choose to go public, but it’s an expensive and extensive process. Part of that process (toward the end) is when bankers price the IPO — they assign a price per share and then a block of shares are sold at the set price to institutional investors. 

After the block of shares is sold, the company’s stock begins trading on the public market. But that’s where IPOs have run into issues lately. Recently, there have been several companies that set a price underwriters deemed reasonable, only to see the stock surge on the first day of trading. That means public market investors are more enthusiastic about the company than was anticipated, and money was left on the table (i.e. the block of shares could have been sold for more). 

When we say the stock surges on the first day of trading, we don’t always mean that it pops by, say, 50 percent. Lately it’s been upwards of 100 percent, according to data from IPO Scoop.

The Largest IPO ‘Pops’ of 2020 

BigCommerce Holdings

  • IPO Price: $24
  • First Day Closing Price: $72.27
  • Percent Change: 201 percent

nCino

  • IPO Price: $31
  • First Day Closing Price: $91.59
  • Percent Change: 195 percent

Berkeley Lights

  • IPO Price: $22
  • First Day Closing Price: $65.45
  • Percent Change: 197.5 percent

Agora

  • IPO Price: $20
  • First Day Closing Price: $50.50
  • Percent Change: 152.5 percent

Lemonade

  • IPO Price: $29
  • First Day Closing Price: $69.41
  • Percent Change: 139 percent

Companies that are going public via SPAC

Autonomous vehicle and lidar tech company Luminar is one of the latest companies to go public via SPAC. And as noted above, DraftKings, Virgin Galactic, and Nikola have also chosen to go public through the SPAC route. They’ve been acquired by the SPACs Diamond Eagle Acquisition Corp., Social Capital Hedosophia, and VectorIQ Acquisition Corp., respectively.

Pershing Square Tontine marked the largest SPAC to ever go public, according to Renaissance Capital, raising $4 billion. It has yet to identify a company to acquire.

This year also saw the largest SPAC merger between Churchill Capital Corp. III and Multiplan for $11 billion, along with the best first-day pop for a SPAC, with Therapeutics Acquisition popping about 20 percent on its first day of trading, according to Renaissance Capital.

Notable SPACs of 2020

Pershing Square Tontine Holdings

  • IPO Price: $20
  • Capital Raised: $4 billion

Churchill Capital Corp. III

  • IPO Price: $10
  • Capital Raised: $1 billion

Therapeutics Acquisition

  • IPO Price: $10
  • Capital Raised: $118 million

Why SPACs are so popular

This year has brought a “perfect storm” for SPACs, according to Marvin. When Virgin Galactic went public via SPAC last year, it received a lot of attention in the financial press. Having someone as high-profile as Chamath Palihapitiya helped put SPACs on the map.

And with IPOs being inherently risky, there was less incentive to take on more risk by going public in the middle of a pandemic and an election year.

“All things considered, all of a sudden a SPAC starts to look very attractive. And then on top of that you have all the really really big-name people being associated with these SPACs, which makes the deal even more attractive,” she said.

SPACs are also more established now that some high-profile companies have gone public via SPAC. More people know what SPACs are, so they are more receptive to conversations about SPACs, according to Marvin.

SPACs are here to stay, Marvin said, but she isn’t sure they’ll continue at the same rapid pace as this year. That said, there’s a two-year time period for a SPAC to make an acquisition, guaranteeing their staying power for at least a while.

Worth noting — in the past it was primarily “serial SPAC issuers” who were involved with SPACs, Marvin said. This year has brought out more players.

“This year we have a ton of new teams with SPACs that have never done these deals prior, and so it’ll be interesting to see what happens,” Marvin said.

Illustration: Dom Guzman

Unity To Raise Up To $1.05B In IPO


This post is curated by Keith Teare. It was written by Sophia Kunthara. The original is [linked here]

Unity set its price range for its upcoming IPO between $34 and $42 per share, setting the company up to raise as much as $1.05 billion.

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Unity, a video game software development company, could be valued at more than $11 billion if it prices at the top of its range.

Unity was one of several tech companies to file to go public late last month as the IPO market remains hot. Companies including Sumo Logic and Snowflake also filed to go public through an IPO, as did companies like Asana and Palantir through direct listings.

It’s the opposite from the IPO market just a few months ago, when tech IPOs were pretty much at a standstill. Now, it looks like everyone wants to go public soon.

Unity might not have the same name recognition as soon-to-be public companies like Airbnb or Palantir, but its numbers are solid.

The company reported $351.3 million in revenue for the first six months of 2020, up from $252.8 million during the first half of 2019. Its net losses also shrunk from $67 million in the first half of 2019 to $54 million in the first half of 2020.

It also counts 1.5 million monthly active creators and 3 billion app downloads per month, according to its S-1 registration statement. It has a presence in more than 190 countries through creators on its platform.

The company has raised at least $1.3 billion in funding from investors including Sequoia Capital and Altimeter Capital. It last raised money with its $125 million Series E in May 2019, per Crunchbase.

The company expects to start trading on the public markets on Friday, Sept. 18, according to IPO Scoop.

Illustration: Li-Anne Dias.

Unity To Raise Up To $1.05B In IPO


This post is by Sophia Kunthara from Crunchbase News

Unity set its price range for its upcoming IPO between $34 and $42 per share, setting the company up to raise as much as $1.05 billion.

Subscribe to the Crunchbase Daily

Unity, a video game software development company, could be valued at more than $11 billion if it prices at the top of its range.

Unity was one of several tech companies to file to go public late last month as the IPO market remains hot. Companies including Sumo Logic and Snowflake also filed to go public through an IPO, as did companies like Asana and Palantir through direct listings.

It’s the opposite from the IPO market just a few months ago, when tech IPOs were pretty much at a standstill. Now, it looks like everyone wants to go public soon.

Unity might not have the same name recognition as soon-to-be public companies like Airbnb or Palantir, but its numbers are solid.

The company reported $351.3 million in revenue for the first six months of 2020, up from $252.8 million during the first half of 2019. Its net losses also shrunk from $67 million in the first half of 2019 to $54 million in the first half of 2020.

It also counts 1.5 million monthly active creators and 3 billion app downloads per month, according to its S-1 registration statement. It has a presence in more than 190 countries through creators on its platform.

The company has raised at least $1.3 billion in funding from investors including Sequoia Capital and Altimeter Capital. It last raised money with its $125 million Series E in May 2019, per Crunchbase.

The company expects to start trading on the public markets on Friday, Sept. 18, according to IPO Scoop.

Illustration: Li-Anne Dias.

Snowflake Sets IPO Price Range 


This post is curated by Keith Teare. It was written by Sophia Kunthara. The original is [linked here]

Data cloud warehouse company Snowflake has set a price range of between $75 and $85 per share for its upcoming IPO, according to a new regulatory filing.

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If Snowflake prices at the midpoint of that range ($80), it would give the company a valuation of $22.3 billion. At the top of the range, it would be valued at nearly $23.7 billion. The company was last privately valued at $12.4 billion after a $479 million funding round in February.

The company also disclosed in the filing that Salesforce Ventures and Berkshire Hathaway would each buy $250 million of the Class A common stock.

Snowflake was among a handful of tech startups that filed to go public on the same day about two weeks ago. Snowflake reported $242 million in revenue for the six months that ended on July 31, 2020–about 133 percent higher than its revenue during the same period in 2019. It also reported $171 million in net losses for the same period, slightly down from the $177 million in losses during the same period in 2019.

The company is backed by investors including Sequoia Capital and Dragoneer Investment Group.

Snowflake is expected to start trading on the New York Stock Exchange on Wednesday, Sept.16, according to IPO Scoop.

Illustration: Li-Anne Dias

Snowflake Sets IPO Price Range 


This post is by Sophia Kunthara from Crunchbase News

Data cloud warehouse company Snowflake has set a price range of between $75 and $85 per share for its upcoming IPO, according to a new regulatory filing.

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If Snowflake prices at the midpoint of that range ($80), it would give the company a valuation of $22.3 billion. At the top of the range, it would be valued at nearly $23.7 billion. The company was last privately valued at $12.4 billion after a $479 million funding round in February.

The company also disclosed in the filing that Salesforce Ventures and Berkshire Hathaway would each buy $250 million of the Class A common stock.

Snowflake was among a handful of tech startups that filed to go public on the same day about two weeks ago. Snowflake reported $242 million in revenue for the six months that ended on July 31, 2020–about 133 percent higher than its revenue during the same period in 2019. It also reported $171 million in net losses for the same period, slightly down from the $177 million in losses during the same period in 2019.

The company is backed by investors including Sequoia Capital and Dragoneer Investment Group.

Snowflake is expected to start trading on the New York Stock Exchange on Wednesday, Sept.16, according to IPO Scoop.

Illustration: Li-Anne Dias

Progress To Acquire Chef For $220M


This post is by Sophia Kunthara from Crunchbase News

Software company Progress announced plans to acquire DevOps startup Chef for $220 million in cash on Tuesday.

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Chef, which was founded in 2008 and is based in Seattle, has more than $70 million in annual recurring revenue, according to a statement from the companies. It has raised at least $105 million in total funding from investors including Battery Ventures and Ignition Partners. The company last raised money with its $40 million Series E in September 2015, according to Crunchbase.

“This acquisition perfectly aligns with our growth strategy and meets the requirements that we’ve previously laid out: a strong recurring revenue model, technology that complements our business, a loyal customer base and the ability to leverage our operating model and infrastructure to run the business more efficiently,” Progress CEO Yogesh Gupta said in a statement. “We’re thrilled to add Chef to our product portfolio and are confident that this acquisition will provide benefit to both organizations, as well as our customers, partners, investors and the Chef community.”

Massachusetts-based Progress will pay $220 million in cash for Chef in the deal, which is expected to close in October.

Illustration: Li-Anne Dias

Episerver To Acquire Optimizely 


This post is by Sophia Kunthara from Crunchbase News

Content management and digital marketing company Episerver announced plans Thursday to buy A/B testing company Optimizely.

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Episerver, which was acquired by Insight Partners in 2018 for $1.16 billion, didn’t disclose the purchase price of Optimizely. 

“Episerver and Optimizely have a shared vision to optimize every customer touchpoint through the use of experimentation. Together, we will enable our customers to do more testing, in more places, with greater ease than ever before,” Optimizely CEO Jay Larson said in a statement. “We believe this combination will make experimentation a mainstream business best practice and an essential part of competing and winning customers in an online world.”

Optimizely, which is backed by investors including Andreessen Horowitz, Benchmark, and Index Ventures, last raised venture capital with its $50 million Series D in June 2019. The Series D round brought its valuation to about $600 million, according to Crunchbase.

Optimizely has more than 1,000 customers including Peloton, Nike, and Uber, according to the company. It joins a growing roster of acquisitions by Episerver, which most recently bought Insite Software in December 2019 and Idio in November 2019.

Illustration: Dom Guzman

Biofourmis Lands $100M Series C For Digital Therapeutics


This post is by Sophia Kunthara from Crunchbase News

Digital therapeutics company Biofourmis has raised $100 million in a new round of funding led by SoftBank, it announced Wednesday.

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The idea behind Boston-based Biofourmis is to predict diseases before they happen to improve patients’ health outcomes. The company offers patient-facing tools like wearable biosensors and an app to report symptoms, along with clinician-facing tools to allow for remote monitoring.

Biofourmis is focused on three broad areas of therapeutics: cardiovascular, respiratory, and oncology, according to CEO Kuldeep Singh Rajput. With the new funding, the company will structure itself to have two major divisions: Biofourmis Therapeutics and Biofourmis Health. 

“I think this whole financing will give us a fantastic opportunity to scale up our health business commercially…but also enable us to expand our pipeline,” Rajput said in an interview with Crunchbase News.

The company said it plans to use the funding to develop, validate, and commercialize released and unreleased digital therapeutics products and services.

In the first quarter of the year, Biofourmis was looking to raise a smaller round to scale up its operations in the United States. The company met with SoftBank in mid-May and started discussing the opportunity to enter new markets. It ended up raising $100 million.

Since May 2019, Biofourmis has signed up more than 20 customers, mostly large pharma companies and hospital systems in the United States and internationally (about 75 percent of Biofourmis’ customers are pharma companies, and the rest are hospitals). The U.S. is Biofourmis’ largest market, followed by Asia Pacific. 

Demand for remote monitoring has risen because of the COVID-19 pandemic. In the first half of 2020, Biofourmis’ revenue has grown 10 times more than all of 2019, Rajput said. Biofourmis will outperform its 2020 projections, he added.

SoftBank’s Vision Fund II led the new round, with participation from existing investors EDBI, MassMutual Ventures, Openspace Ventures, and Sequoia Capital. The company last raised money with its $35 million Series B round in May 2019. The Series C round brings Biofourmis’ total funding to about $145 million.

Illustration: Li-Anne Dias

Digital Bank Neon Pagamentos Raises $300M Series C


This post is by Sophia Kunthara from Crunchbase News

Brazilian fintech startup Neon Pagamentos has raised $300 million in a Series C round of funding, the company announced Tuesday.

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Neon is essentially a digital bank. The company, founded in 2016, offers credit cards, personal loans and investment products, among other services.

The Series C round was led by General Atlantic with participation from new investors including Vulcan Capital, PayPal Ventures, Endeavor Catalyst and funds and accounts managed by BlackRock. Existing investors Monashees and Flourish also participated, as did BBVA through Propel Venture Partners, according to a statement from the company.

Neon last raised a $92 million Series B round in November 2019.

It plans to use the new funding to expand its team and grow its user base across both its business and consumer client spaces, according to a statement. More specifically, the funding will be used for new products and features on the company’s consumer platform, new financial services, and to grow the company’s credit offerings. 

“Brazilian banking penetration is relatively high for Latin America but still lags developed market peers, with a significant under-banked population that traditional banks have generally overlooked. Neon is focused specifically on providing access to this group and bringing them into the financial world,” Neon President Jean Sigrist said in a statement. “This new financing enables us to continue our mission of serving even more clients with an increasingly robust offering.”

There are more than 9.4 million accounts on the Neon platform, according to the company. 

Illustration: Li-Anne Dias

E-commerce Startup Wish Files Confidentially To Go Public


This post is by Sophia Kunthara from Crunchbase News

E-commerce platform Wish said Monday that it confidentially filed an S-1 registration document with the United States Securities and Exchange Commission to go public.

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A confidential S-1 filing means that while Wish has initiated the process to go public, its financials and other business information are not publicly available through the SEC.

As a private company, Wish raised $1.6 billion in total funding from investors including General Atlantic, Founders Fund and GGV Capital. The company last raised money with its $300 million Series H in August 2019.

Wish has more than 70 million active users and more than 1 million registered merchants, according to its website, and more than 3 million products are sold every day through the platform.

Wish joins a busy lineup of tech startups that have filed to go public or made their S-1 documents public within the last week or so. Palantir, Asana, Snowflake and GoodRx are among the companies that have rushed to the public markets ahead of the 2020 presidential election in November. 

We’ll have more when Wish’s S-1 document becomes public.

Illustration: Li-Anne Dias