IPO mistakes, fintech results, and the Zenefits ‘mafia’ – TechCrunch

IPO mistakes, fintech results, and the Zenefits ‘mafia’ – TechCrunch


I welcome Tech Glass ExchangeWeekly startups and markets newsletter for you to enjoy this weekend. It is largely based The Saturday column that appears on the extra crunch, But free. And it is made Only You can sign up for the newsletter Here.

Other than that, let’s talk about money, startups and the latest spicy IPO rumors.

(The top of the newsletter won’t appear on the website over time, so be sure to sign up if you want the whole thing!)

Big Commerce is not worried about its IPO prices

One of the most interesting segments of the market today is how VC Twitter discusses successful IPOs and how CEOs of these companies view their public market debut.

If you read Twitter on the day of IPO, you will often see VCs walking around, screaming and saying that IPOs are a racket and they must be taken down. now. But if you dial the CEO or CFO of a company that has really gone public to receive a tremendous welcome in the market, they will spend five minutes telling you why all this hesitation Is wrong

In this week’s highlight: Big Commerce. Well known VC Bill Gorley Was angry Big Commerce shares rose sharply after trading, compared to their IPO price. There is a point, with the Texas-based e-commerce company valued at 24 per share (above). A raised range, It should be said), but Opened on and is around $ 88 on Friday.

So, when I met Big Commerce CEO Brent Bellam on Zoom after his first film, I had some questions.

First, some background. According to Belem, Big Commerce secretly filed in 2019, intended to go public in April, and its offer was delayed due to the epidemic. Then in the context of COVID-19, sales of existing customers increased, and new customers arrived. So, the IPO came back.

Big commerce, as a reminder Watching growth Acceleration In recent times, its modest growth rates have made it more enticing than you might imagine.

No matter, if I remember the math, the company was worth more than 10x its annual run rate at the cost of its IPO, so it wasn’t cheap Even at 24 per share. And in response to my question about the price, Belem said he was satisfied with his company’s final IPO price.

He had a number of reasons, including that the price of the IPO sets the key point for calculating future returns, and he estimates the success based on the success that investors have in their stock. How well you perform on the ten-year horizon, and how more long-term investors can help you succeed. Lock during your road show, your first day’s float will be shorter. The more investors hold their shares after the first, the more supply / demand declines, meaning that your stock opens up more than that, otherwise just by acquiring equities.

It all sounds incredibly reasonable. Even so, owning one is still beyond the reach of the average person.

Market note

The exchange spent a lot of time on the phone this week, which will result in a lot of notes for your use. And there was a flood of interesting statistics. So, here’s a digest of what we heard and saw that you should know:

  • Fantastic mega rounds are heating up, With 28 in the second quarter of 2020. The FinTech round came down yesterday, but it looks like the sky is still the limit for the launch of financial technology.
  • Tech stocks set new records this week, something that has become so commonplace that the new all-time highs for Nassau have not really caused a stir. Hell, this is Nasdaq 11,000, where’s our gosh darn party?
  • Executives’ Dan Premick noted this week That SPAC could raise far more than private equity at the moment, and that “more than 1 1 billion were new [SPAC] Filing during the last 24 hours on Wednesday. I have clearly left tabs on the number of SPACs that occur.
  • But we did Dig two of the specs there, If you want a taste of today’s market.
  • The exchange also spoke with Matt Stoica, RexSpace’s chief civil solutions officer, before trading in its shares. The chat emphasized the pace of post-Quaid 19, and the constant emphasis on cloud transfers in many IT costs. Rexspace intends to reduce its debt burden by advancing its IPO. It costs 21, The lower end of the range, So he didn’t get the extra first check. And since the company’s shares are up sharply today under the price of its IPO, there was no vice chancellor about the misrepresentation, in particular. (This only results in turning in a certain direction.)
  • I also spoke with Fast CEO Joshua Becksby this week. The cloud services company began to return some of its recent profits after earnings, which shows how the market is overvaluing some public tech shares. After all, fast Defeated Q2 profit, Q2 revenue, and picked up Its all-year guidance – and its shares fell? It’s wild, maybe this income Creates Was it related to Tuk Tuk? Or perhaps after running from a 52-week low of 10.63 to a 52-week high of 7 117, the market realized that Fastley could only accelerate.

Anyway, during our chat, fast CEO Joshua Bucksby taught me something new: Used software companies are like SaaS firms, but more than that.

In the old days, you would buy a piece of software, and then own it forever. Now, buying a one-year sauce license is common. With pricing based on usage, you choose to purchase on a daily basis, which is the next step in the evolution of purchases, it seems. I asked if the model is not tougher than Sauce, you know? “Maybe, but you get along with your customers,” he said.

Different and beautiful

To wrap up, as always, here’s one last piece of data, news and other miscellaneous that is worth your time from Saturday.

  • TechCrunch Interacted with the intercom, Who has recently hired a CFO and is therefore willing to go public. But then he said that for the first time there was a distance of at least two years, which was a tumultuous one. The company wrapped up its January 31, 2020 fiscal year with $ 150 million AR. It’s too big now. Be public!
  • Xenophytes “Mafia” Picked up a lot, And A little this week. “Mafia” is a terrible term anyway. We must come up with something new.
  • Danny Crichton Wrote about SaaS income security, Which was cold.
  • Natasha Mascarenhas Written About Pod Learning, Who are not Super Germans of the Exchange but find me incredibly anxious for their current lives, so I’m including this piece equally.
  • I talked to him CEO This week’s Week, noodles on your company size (million More than 100 million AR), And its competitors Asana and Pir.com. The whole group is over 100 million each, so I could turn them into a post next week, entitled “Make Your Cowards Public”, or something. But maybe with a different title because I don’t want to discuss with the 17 internal and external PR teams why I’m fine.
  • The exchange also held talks with VC firms M13 (Large on services, different office locations, pay attention to customer costs over time) and Capacity Capital (D2C brand focused, very interesting thesis) this week. Our conclusion is that there is more juice here, and focus on the more user-focused aspect of VC than you might expect from recent data.

We’ve blown our 1000 word target in the past, so, in a nutshell: stick to it TechCrunch For a great cool funding on Monday (it’s the fastest growth I’ve ever heard of), make sure Listen to the latest equity app, And analyze through Latest TechCrunch List Updates.

Carpets, fist albums, and good vibes,

Alex





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