PitchBook News - The IPO roadshow goes virtual

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The Daily Pitch: VC

June 10, 2020

Like our newsletter? The data comes from the PitchBook Platform — our data software for VC, PE and M&A

Today's Top Stories

Virtual IPO roadshows could become the new post-crisis standard

Car marketplace Vroom made its debut on the Nasdaq Tuesday. (Courtesy of Nasdaq, Inc.)

Social distancing measures amid the COVID-19 crisis have forced IPO roadshows online—and some believe they could remain there even after worries about the coronavirus begin to fade.

Entirely virtual roadshows may not become commonplace for all companies. But recent trailblazers such as Vroom and JDE Peet's have shown that roadshows conducted via the internet can still lead to successful listings—and more companies are following suit this week:

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Vroom hits the gas in IPO as shares double

(Michael H/Getty Images)

Shares of online used-car seller Vroom more than doubled by the end of the company's first day trading on the Nasdaq, signaling that public investors are continuing to welcome new entrants.

Vroom's stock finished the day at $47.90 per share, up nearly 118% from its listing price of $22. The stock's pop follows a similarly warm reception for the debuts of ZoomInfo and Warner Music Group last week.

Vroom raised $467.5 million in its IPO after selling 21.25 million shares at $22 each. The company originally planned to sell 18.75 million shares at between $15 and $17 apiece; it later upped that range to between $18 and $20 per share. In the first three months of 2020, the business recorded a net loss of $41 million. Revenue during that time period hit $375.8 million, a 60% increase year-over-year. Vroom was valued at around $800 million following its Series G in 2018, according to PitchBook data.

The auto retailer had received prior funding from backers including L Catterton, which controls 16.8% of the company following the offering, and General Catalyst, which now owns 5.2%. Other significant shareholders include T. Rowe Price, Cascade Investment and AutoNation.

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A message from the Australian Government

Pathways to growth in Australia's digital-first market

Learn how Australia can be your pathway to growth in the Asia Pacific.

With its digital-first culture, Australia has emerged as an ideal environment to fast-track innovation in a stable and robust economy successfully steering out of the pandemic.

It presents proven opportunities and strong incentives for companies to expand their global footprint.

Hear directly from business leaders who have mapped their growth in Australia via high-performing sectors including cybersecurity, fintech, immersive, enterprise and ecommerce. Zoom investor Bill Tai and rapid-growth companies including Salesforce, Afterpay, FinancialForce, GO1 and Cardlytics will detail their insights into the Australian market edge.

Register for the free Accelerating Technologies Summit, June 15-18, hosted by the Australian Trade and Investment Commission.

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Varied lists of firms lead lending deal counts in PE

In recent years, the private debt market has been in a state of steady expansion. And the growth of interest in such deals has come from investors across the private-market landscape, ranging from investment banks such as Goldman Sachs to private equity powers like The Carlyle Group.

Which of these investors have been leading the charge? Our Q1 2020 US PE Lending League Tables break down all the latest data, tabulating the most active lenders in private equity deals across sector, geography and transaction type into more than two dozen different datasets:

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Recommended Reads

Six years ago, David Rubenstein gave more than $12 million to restore a Robert E. Lee memorial. Now, he's calling for Congress to change the memorial's name. [The Washington Post]

For some restaurants, deals with Grubhub and other food delivery companies have been a godsend during the pandemic. For others, it's more closely resembled "a hostage situation." [The New York Times]

Livestream shopping could be the future of ecommerce. For a 34-year-old pioneer in the space named Huang Wei, it's already become the source of a growing fortune. [Bloomberg]

Since yesterday, the PitchBook Platform added:

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Quick Takes


	The Daily Benchmark
	2008 Vintage Global PE Funds between $250M-$500M
	VC Deals
	DNAnexus picks up $100M
	Goldman Sachs leads $50M investment for JSonar
	Medical device startup CereVasc lands $43.9M
	Yugabyte brings in $30M
	Exits
	Snowflake confidentially files for IPO
	Fundraising
	Wing scoops up $450M for third fund
	Collab Capital launches fund for black founders
	Investors
	SoftBank plans more job cuts at Vision Fund

The Daily Benchmark

2008 Vintage Global PE Funds between $250M-$500M

Median IRR

8.49%

Top Quartile IRR Hurdle Rate

15.10%

1.59x

Median TVPI

Select top performers

Altaris Health Partners II

KSL Capital Partners Supplemental II TE

Evergreen Pacific Partners II

*IRR: net of fees

16 Funds in Benchmark »

Check out the latest version of PitchBook Benchmarks

VC Deals

DNAnexus picks up $100M

DNAnexus has raised $100 million in a round co-led by Perceptive Advisors and Northpond Ventures, with participation from investors including GV and First Round Capital. Founded in 2009, the Mountain View, Calif.- based company is the developer of a cloud-based platform that simplifies data analysis and management for clients in the life sciences industry. DNAnexus raised $68 million in February 2019.

Additional Investors:

Foresite Capital, Regeneron Pharmaceuticals, TPG Growth

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Goldman Sachs leads $50M investment for JSonar

Data security startup JSonar has raised $50 million from Goldman Sachs. Founded in 2013 and based in the Boston area, the company was valued at $46 million in 2015, according to PitchBook data. David Campbell, a managing director in Goldman Sachs' merchant banking division, has joined the company's board.

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Medical device startup CereVasc lands $43.9M

CereVasc has collected $43.9 million in a Series A co-led by Perceptive Advisors and Aton Partners. The funding will help the Massachusetts-based company conduct a clinical trial for a cerebrospinal fluid shunt that's designed to treat hydrocephalus without the need for invasive surgery.

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Yugabyte brings in $30M

Yugabyte has raised a $30 million Series B led by 8VC, with participation from Lightspeed, Dell Technologies Capital and Wipro Ventures. Founded in 2016, the company is the provider of an open-source SQL database intended to help companies such as Kroger and Plume build applications. Yugabyte raised $16 million in 2018 at a $59 million valuation, according to PitchBook data.

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Exits

Snowflake confidentially files for IPO

Cloud data company Snowflake has confidentially filed with the SEC for an initial public offering that could occur in the next few months, according to Bloomberg. The San Mateo, Calif.-based company has raised over $1 billion to date and was valued at $12.4 billion in February, according to PitchBook data. Its backers include Dragoneer, Salesforce Ventures and Sequoia.

View details

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Fundraising

Wing scoops up $450M for third fund

Wing Venture Capital has raised $450 million for its third fund, which will focus on early-stage investments in enterprise tech companies. The firm has seen its investing activity increase since stay-at-home measures were put into place, and is already closing a few of its first investments from the latest vehicle. Founded in 2013 and based in Palo Alto, Wing counts Snowflake, Cohesity and Moogsoft among its portfolio companies.

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Collab Capital launches fund for black founders

Atlanta-based Collab Capital has reportedly launched a $50 million vehicle to fund black entrepreneurs. The fund has a profit-sharing model that kicks in once a portfolio company reaches set revenue targets. The fund also announced its first investment, a $500,000 deal for women's rain hat company Hairbrella.

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Investors

SoftBank plans more job cuts at Vision Fund

SoftBank's Vision Fund is now looking to let go of about 15% of its staff, or as many as 80 employees, according to Bloomberg. Rajeev Misra, head of the fund, is reportedly looking to cut about 20% of its costs and had originally planned to lay off about 10% of the fund's workforce. SoftBank's international arm is also reportedly laying off about 26.

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View 140 investments »

Chart of the Day

"The rapid spread of COVID-19 within Italy in early March confirmed that a pandemic was unavoidable in Europe. The continent's largest economies, including the UK, France, Spain and Germany, joined Italy on lockdown within a matter of weeks. ... Sizable deals completed in Q1 2020 or filtering through currently were likely negotiated prior to the widespread disruption in Europe or pushed through in anticipation of future issues."

Source: PitchBook's Q1 2020 European Venture Report