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The IPO frenzy is not letting up, Bumble informed the world this morning.
Per a new SEC filing, the dating company raised its target IPO price range, indicating that its previous attempt to quantify its per-share value was an undershoot. This means we’ll need to calculate a host of new valuations and revenue multiples for the company.
But more than that, we have a question to answer: Is Bumble aiming for a Match.com price, despite not being as profitable as its already-public rival? The last time we covered the pair, Bumble’s implied revenue multiples were discounted compared to Match, but with this new price, has the smaller company gained ground?
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And if so, does it mean that we’re seeing more public market enthusiasm for private companies? We’ll find out.
When it comes to the frenetic demand for IPO shares from public investors, I am reminded of a particular Dilbert. In this particular strip, Wally gets fired and is then hired back as a consultant. People outside the company appear smarter, he said, so he’s now back and getting paid more money than before.
This, but for private companies going public. Some companies appear to have huge promise while private, only to fizzle slowly while public. Or they manage huge price gains during their IPO process, only to cede those wins after they have a few trading months under their belt.
Is that what’s going to happen with Bumble?
Bumble’s new IPO pricing range
Bumble targeted a $28 to $30 per-share IPO price when it first set a range, implying a greater-than $1 billion raise. Now the company is selling more shares at an even higher price. From 34.5 million shares to 45 million, and at a new $37 to $39 per share price range, Bumble could raise $1.66 billion to $1.76 billion in its IPO.
And that’s not counting its underwriters’ option of 6.75 million shares, which might bring its total raise to $2.02 billion at the top end of its new pricing interval.
What is Bumble worth at those new prices? Using its simple, shares-outstanding post-IPO count of 112,745,301 — inclusive of its underwriters’ option — the company would be worth $4.17 billion to $4.40 billion.
The Atlanta-based BIP Capital has a new name for its venture capital operations (Panoramic Ventures); a new partner (Paul Judge); and is launching a $300 million new fund in its bid to plant a flag as the premier venture fund among the rising startup cities across the country.
Miami may have grabbed headlines recently as a new hub for venture capital and technology startups, but like other cities across the Southeast it’s lacked venture funds of a significant size since the early days of the dot-com bubble. Panoramic wants to be the fundraising destination for entrepreneurs outside of traditional tech hubs like Boston, Silicon Valley and New York as these new tech hubs emerge.
Atlanta, which already boasts several startup companies that have achieved billion-dollar valuations including Greenlight Financial and Calendly, has an equally burgeoning startup scene and an opportunity to become the central hub for venture capital investment in a region that encompasses several other rising tech hubs in the Southeast like Birmingham, Miami, Nashville, and New Orleans.
It’s a strategy similar to the one that Drive Capital has employed to become a leading fund in the Midwest and across the U.S.
Under the new partnership, which will include famed early stage Atlanta investor, Paul Judge, BIP Capital’s venture activities will operate under the Panoramic Ventures brand.
Should the firm manage to raise the $300 million it has targeted for Panoramic’s inaugural investment vehicle it would become the largest venture fund in the Southeast.
“It’s important to have a fund at that scale,” said Mark Buffington, a co-founder of BIP Capital and Panoramic Ventures. “You see the venture activity that is increasing in the region [and] one thing that’s been missing is a really active venture fund that can scale up as companies grow.”
Panoramic intends to be active at the seed stage while having the capacity to make investments in later stage venture backed companies as well, according to the two co-founders. And the firm will also try to focus on a more diverse group of entrepreneurs, thanks to the addition of Paul Judge.
Judge, a Black serial entrepreneur and investor, was the co-founder of the Atlanta-based voice recognition tech developer Pindrop, the Wi-Fi startup Luma Home, and security tech developer Purewire. He’s also an investor several startups across the Southeast through his own venture initiatives, including Techsquare Labs and Judge sits on the investment committee for the SoftBank Opportunity Fund, focused on Black, Hispanic and Native American founders. His portfolio includes companies like LeaseQuery, Cove.tool, OncoLens and Eventeny.
About $125 million has already been soft-circled for the new Panoramic Ventures fund, which expects to work closely with some of the other investment firms that have cropped up or established a presence in the Southeast. That includes firms like Outlander Labs, founded by the husband and wife investment team of Paige and Leura Craig, and the LA-based firm, Mucker Labs, which has an investment partner working out of Nashville.
“There’s been an absence of this type of energy and this type of heft in a venture fund in Atlanta,” said Judge. “That’s the hole that we’ve been aiming to fill.”
Panoramic will invest in Seed, Series A, and Series B funding rounds, the company said in a statement. Investment areas will focus on include business-to-business software as a service companies, healthcare software, financial technologies, digital media, cybersecurity, and frontier technologies.
Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here — and be sure to check out last week’s main ep that dug into Robinhood, Miami, and a host of other topics.
This morning we had a pile of news to get through. Here’s the rundown:
- Pony.ai raised another $100 million, which underscores our growing thesis that there is no amount of money yet that will produce the tech required for self-driving cars to work. Perhaps we will get there, but it is going to cost a pretty penny or two.
- Sticking to cars, the Apple-Kia tieup is kaput, which we should have known the moment it became known. Apple previously bought startup Drive.ai back in 2019, of course.
- Vroom, a 2020 IPO, bought a Super Bowl ad. Who would have expected that? Its shares are up, however, after the ad.
- Still on the car beat, Tesla bought $1.50 billion in bitcoin, and may accept the stuff as tender to buy its vehicles in the future. The move sent the price of bitcoin higher.
- Clubhouse got banned in China.
- Phable raised $12 million, Nexthink raised $180 million, and Bumble is targeting a higher share price in its impending IPO.
- And we may have figured out the ∆ between what investors are saying about the Seed market, and what data has largely said.
Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.
Source: https://techcrunch.com/2021/02/08/equity-monday-tesla-buys-bitcoin-nexthink-raises-and-bumble/
Getaway CEO Jon Staff said that while the startup’s offerings weren’t designed with a pandemic in mind, they turned out to be well-suited for a time when people were eager to find safe ways to get off Zoom and out of their homes.
Founded in 2015, Getaway builds “Outposts” — collections of tiny cabins in rustic locations within a two-hour drive of major cities like Atlanta, Austin, Los Angeles and New York. Those cabins sound perfect for socially distanced retreats, with guests checking themselves in, each cabin built with its own fire pit and spaced 50 to 150 feet from the others and there were no common areas.
Staff told me that rather than promoting traditional tourist activities, Getaway emphasizes disconnecting from all the stresses and distractions of modern life. So its cabins don’t include WiFi, and they also have lockboxes where visitors can hide their phones for the duration of their visits.
“We try to get you to do nothing, quite literally,” he said. “How few moments are there in life when really have enough free time that you could do nothing? And if not nothing, have a deep conversation with your partner, or take the time to cook a good meal and really enjoy the experience with people who are there sitting next to the campfire with you?”
Staff acknowledged that some investors were skeptical about Getaway’s insistence on building the cabins and Outposts itself. He recalled talking to tech-focused venture capitalists who would ask, “Why isn’t this a platform? Why isn’t it going to be worth $1 billon a year from now?” while potential investors from the real estate world would want to know, “How tall of a skyscraper do you want to build?”
“For a while, I had this anxiety that we don’t fit in any box,” he said. “But I learned to appreciate the benefits of not fitting in any box — that’s where innovation really lies.”
Image Credits: Getaway
And the Getaway approach seemed to resonate in 2020, with bookings increasing 150% year-over-year and the startup’s Outposts operating at nearly 100% occupancy. Today it’s announcing that it has raised $41.7 million in Series C funding — first revealed in a regulatory filing and led by travel- and hospitality-focused firm Certares.
Getaway plans to use the funding to expand to 17 Outposts this year, up from 12 in 2020 and nine in 2019. The startup has now raised more than $81 million in total funding, according to Crunchbase.
Staff said that eventually, Getaway could also add other products and services, because, “The brand is not about tiny houses or tiny cabins, The brand is about [the fact that] the world is too noisy and too connected over the long haul. Getaway could be doing other things to solve that problem.”
At the same time, he said it’s crucial to to remain clear and focused on the experience that Getaway wants to provide.
“We always try to remind ourselves that we are not creating the experience at Getaway,” he said. “You’re creating the experience and, if we’re doing it well, we’re facilitating it, we’re giving you everything you need and nothing you don’t … There’s a lot of freedom to make of it what you want as the guest, but there are also boundaries.”
For example, Staff said that there have been requests to offer Getaway Outposts for work retreats, but that’s not what they’re designed for: “We’re not going to police it, but we’re not going to put in WiFi.”
BeyondID, a cloud identity consulting firm, announced a $9 million Series A today led by Tercera. It marked the first investment from Tercera, a firm that launched earlier this month with the goal of investing in service startups like Beyond.
The company focuses on helping clients manage security and identity in the cloud, taking aim specifically at Okta customers. In fact, the firm is a platinum partner for Okta. As they describe their goals, they help clients in a variety of areas including identity and access management, secure app modernization, Zero Trust security, cloud migration and integration services.
CEO and co-founder Arun Shrestha has a deep background in technology including working with Okta from its early days. Shrestha came on board in 2012 as the head of customer success. When he began, the startup was in early days with just 50 customers. When he left five years later just before the IPO, it had over 3500.
Along the way, he gained a unique level of expertise in the Okta tool set, and he decided to put that to work to help Okta customers implement and maximize Okta usage, especially in companies with complex implementations. He launched BeyondID in 2018 with the intention of focusing on systems integrations and managing a company’s identity in the cloud.
“We believe we are becoming a managed identity service provider, so managing anything identity, anything related to cybersecurity. We’re helping these companies by being a one-stop shop for companies acquiring, deploying and managing identity services,” Shrestha explained.
It seems to be working. The last couple of years the company revenues grew at 300% and as it matures, and the growth rates settle a bit, it’s still expected to grow between 70 and 100% this year. The firm has 250 customers including FedEx, Major League Baseball, Bain Capital and Biogen.
It currently has 75 employees serving those customers with plans to grow that number in the next year with the help from today’s investment. As Shrestha adds new employees, he sees building a diverse workforce as a crucial goal for his company.
“Diversity is absolutely critical to our long term sustainable success, and it’s also the right thing to do,” he said. He says that building an organization that promotes women and people of color is a key goal of his as the leader of the company and something he is committed to.
Chris Barbin, who is managing partner and founder at lead investor Tercera, says that he chose BeyondID as the firm’s first investment because he believes identity is central to the notion of digital transformation. As more companies move to the cloud, they need help understanding how security and identity work differently in a cloud context, and he sees BeyondID playing a critical role in helping clients get there.
“BeyondID is in a rapidly growing space and has an impressive customer list that represents nearly every industry. Arun and the leadership team have a strong vision for the firm, deep ties into Okta, and they’re incredibly passionate about what they do,” he said.
