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Snowflake, JFrog kick off blockbuster week for tech IPOs
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Amid growing investor enthusiasm, cloud data company Snowflake priced its IPO at $120 per share, raising some $3.4 billion and pushing its initial market value to nearly $33.3 billion. That's almost triple the $12.4 billion valuation private investors gave Snowflake earlier this year. The San Mateo, Calif.-based company's shares are expected to begin trading on the NYSE on Wednesday.
Snowflake had already increased the expected price range of its offering to between $100 and $110 per share, up from $75 to $85 previously. Berkshire Hathaway and Salesforce Ventures have each agreed to purchase $250 million worth of stock at the IPO price.
Meanwhile, another Silicon Valley unicorn is making its public market push, with JFrog reportedly pricing its IPO at $44 per share, above an expected range of $39 to $41 per share and raising $352 million. At that IPO price, JFrog would command an initial market capitalization of almost $4 billion, more than three times the $1.2 billion valuation it received in 2018, according to PitchBook data. |
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Opendoor to go public in merger with Social Capital SPAC
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| (Image courtesy of Opendoor) |
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Opendoor has agreed to merge with Chamath Palihapitiya's special-purpose acquisition company, Social Capital Hedosophia Holdings Corp. II, in a deal that gives the real estate tech business an enterprise value of $4.8 billion. Opendoor was valued at $3.8 billion last year, according to PitchBook data.
The merger will provide the San Francisco-based company with around $1 billion in cash, including a $600 million PIPE investment from new investors BlackRock and the Healthcare of Ontario Pension Plan, as well as existing Opendoor shareholders. The company's existing investors, which include NEA, GGV Capital and Norwest Venture Partners, will roll their equity stakes into the new entity.
Opendoor operates a digital platform that streamlines the process for buying and selling homes. The company expects revenue to fall 48% to $2.5 billion this year, down from $4.7 billion in 2019, according to an investor presentation. It also has plans to expand operations from 21 US real estate markets to at least 100 markets across the nation.
The SPAC deal marks a change of fortune for Opendoor, which reportedly laid off 35% of its staff in mid-April. The business paused new home purchases in March due to the pandemic and resumed with modified operations in May. |
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Preparing for the post-pandemic era
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The COVID-19 pandemic is not over, but it will cease at some point. Many companies are looking ahead to the post-COVID environment, assessing what preparations could help them position for what is set to be one of the more dynamic business environments in years. In the latest edition of the Road to Next series, Deloitte examines how a critical component of the global ecosystem—expansion-stage companies that matured throughout the 2010s—are adapting to new economic realities.
Key themes include:
- How much private capital is still flowing to these businesses and associated implications
- The four key themes defining companies' preparations: antifragility, consolidation, diversification and opportunism
- Insights from Deloitte partners on specific tactics, from new approaches to onboarding fresh, remote talent to investment in automation of processes and tasks that call for lower thresholds of judgment
Access the full report |
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How the pandemic is accelerating digital transformation and DevOps adoption
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The coronavirus outbreak and subsequent shelter-in-place restrictions are increasing the pressure to continuously develop digital products and services, as developed societies place more value on the ability to work, learn and communicate remotely.
Companies with sophisticated IT capabilities are thriving in this new environment, but legacy non-technology businesses face significant risks for disruption, according to our Q2 Emerging Tech Research report on Cloudtech and DevOps. Other highlights include:
- VCs poured $1.1 billion into Cloudtech and DevOps deals in Q2, bringing 2020's total to $2.1 billion through June 30 and keeping the year on pace with 2019
- Venture investment in collaboration tools is accelerating, with several new unicorns minted in the space
- While 2020 is likely to cause IT budgets to tighten in the near-term, the industry's strong tailwinds will keep dealmaking steady
- Exit value through Q2 was subdued compared with 2019, which saw a record of nearly $50 billion in exit value due to several notable IPOs
If you have any questions or feedback about the research, we'd love to hear from you: analystresearch@pitchbook.com |
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As seas continue to rise and storms continue to strengthen, millions around the world will confront an impossible question: When is it time to abandon a place to climate change? [Harper's]
Nvidia's $40 billion acquisition of Arm is the latest parry in the chipmaker's against Intel. It's a deal that, two years ago, the company's CEO couldn't have dreamed up. [The Wall Street Journal]
As the sway of day-trading retail investors grows, Wall Street professionals are paying a growing amount of attention to online discussions of the amateurs' latest bets. [Bloomberg] |
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Since yesterday, the PitchBook Platform added:
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12
VC valuations
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1591
People
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460
Companies
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17
Funds
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2007 Vintage Global Funds-of-Funds
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Fitness startup Zwift scores $450M Series C
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| Zwift, a provider of an online fitness platform, has raised $450 million in a round led by KKR. The Calif.-based business enables cyclists and runners to complete structured workouts in 3D virtual environments individually or in groups. Zwift will use the funds to introduce its own bike and other hardware. The investment values the company at over $1 billion. |
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General Atlantic values Uruguayan startup at $1.2B
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| Existing investor General Atlantic has led a $200 million investment in dLocal, valuing the Uruguay-based developer of a cross-border payments platform at $1.2 billion. Addition also took part in the funding. The company plans to use the new capital in part to continue its expansion into new emerging markets, including countries in Central America, Africa and Southeast Asia. |
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Devo Technology secures $60M Series D
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| Devo Technology, the developer of a cloud-native data analytics and security platform, has raised $60 million in a round led by Georgian Partners. Bessemer Venture Partners and Insight Partners also participated in the funding. In July, the Cambridge, Mass.-based company was awarded a $9.5 million contract from the US Air Force to help it provide a central security hub for enterprise defense. |
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Volansi picks up $50M Series B
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| Hexagon Bio has raised a $47 million Series A led by The Column Group, with participation from 8VC and Two Sigma Ventures. The Menlo Park-based biotech startup is developing a molecule discovery platform to help combat cancer and infectious diseases. The company was valued at $33.2 million in 2017, according to PitchBook data. |
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NTopology pulls in $40M Series C
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| NTopology, a developer of 3D printing software, has raised a $40 million round led by Insight Partners, with existing investors Root, Canaan, DCVC and Haystack also participating. The New York-based company was valued at $90 million in July 2019, according to PitchBook data. |
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Oatly deliberates over 2021 IPO
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| Oatly, a Swedish startup that sells oat milk and other products including oat-based yogurt and ice cream, has held talks with advisers about conducting an IPO in the US, according to Bloomberg. The debut, which could take place during the first half of next year, could reportedly result in a $5 billion valuation. Two months ago, the company raised $200 million at a reported $2 billion valuation from a list of investors that includes Blackstone, Oprah Winfrey, Jay Z's Roc Nation and Natalie Portman. |
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Outset Medical stock more than doubles in Nasdaq debut
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| Stock in Outset Medical surged nearly 125% in its public debut Tuesday, closing the day at $60.68 per share after the company offered almost 9 million shares at $27 apiece. The San Jose-based developer of kidney dialysis technology had previously marketed 7.6 million shares at a range of $22 to $24 apiece. Outset Medical was valued at $725 million in February, according to PitchBook data. |
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Social Capital eyes $500M for next SPAC
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Greylock wraps up latest $1B fund
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| Greylock Partners has closed its 16th flagship fund with $1 billion in commitments. The Menlo Park-based firm raised the same amount for its 15th flagship vehicle in 2016. Greylock primarily targets consumer and enterprise software companies, with a portfolio that includes Airbnb, Medium and Discord. The firm will use the new fund to back both early- and growth-stage startups. |
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"The median late-stage VC deal size for biotech & pharma startups in 2019 was $15.0 million, which is a 50% premium when compared to the $10.0 million median from non-biotech late-stage VC deals. Late-stage VC rounds—Series C and beyond—provide startups with the capital needed to scale up production and manufacturing to meet the demands of clinical trials with larger patient enrollment numbers."
Source: PitchBook analyst note on biotech & pharma startups |
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