VCs reload ahead of the election as unicorns power ahead – ClearTips
This is the ClearTips Exchange, a newspaper that airs on Saturdays based on a column of the same name. You can sign up for email here.
It was an active week widely in the tech world, with big news from Facebook and Twitter and Apple. But amid the noise of headline-grabbing, there was a steady drift of fast news for unicorns, or private companies of $ 1 billion or more.
A brighter week for unicorns
The exchange spent a good part of the week looking at different stories from unicorns, or companies that would soon fit the bill, and it’s amazing to see what we got to write compared to last year. But how positive was the financial news.
Databricks, For example, ClearTips revealed a hold of financial data prior to regular publication, including the fact that its annual run rate (not ARR) increased to $ 350 million by the end of Q3 201, which was Q2 It was over $ 200 million in 2019. The IPO is ready, but not in a hurry for the public markets.
Sticking to our theme, cool Wants more money for a major new valuation, probably more than $ 2.2 billion which is not surprising. This is more good unicorn news. As stated in the report, “the majesty of India [became a] Unicorn after its new $ 100 million funding round, which came out this week.
Razorpay is one of several Indian start-ups during COVID-19 that have become unicorns. (And this week another half-dozen startups are revealed to have become unicorns “amidst the epidemic”).
Recently there was a lot of unicorn news that we have lost all our attention. Things like seismic raise $ 92 million, raising its valuation to $ 1.6 billion a few weeks ago. How lost in adulteration?
All this matters because while the IPO market has attracted a lot of attention in the last quarter, the unicorn world is not sitting still. In fact, it realizes that Unicorn VC activity is the highest since 2019.
And, as we will see in just a moment, Griff is being refilled for the Unicorn Mill as we speak. So, as long as some material breaks our current investment and exit patterns, expect the same.
What do Unicorns Eat? Cash. And many, many chancellors raised cash in the last seven days.
A partial list is as follows. It could be that investors want to lock in new funds before the election and whatever chaos may occur. So, in a particular order, here’s the new flush:
- $ 450 million for Open View, $ 800 million for Canaan, $ 840 million for True Ventures, $ 950 million for Lead Edge Capital
- Some named Benson Capital Partners have a $ 50 million fund. Gail Benson, for whom the firm is named, owns several New Orleans sports teams according to Forbes.
- Plus Venture Capital, created by two former 500 startup MENA investors, has raised $ 60 million in funding.
- The first round is looking for $ 220 million, with former Google exec Kai-Fu Lee’s Sinovation Ventures looking for a billion, while Khosla wants a little more.
All of that capital needs to go to work, which means too many goals for many, many startups. The exchange also took over this week with some new firm: Race Capital. Inspired by Alfred Chuang, formerly or BEA, who is now an angel investor in charge of his own fund, the firm has $ 50 million to invest.
Sticking to private investments in startups at the moment, a lot has happened this week that we need to know more about. As if Finlager raised $ 20 million from API-powered Argill from Bain Capital Ventures to “unlock access to employment records and democratically.” ClearTips is currently tracking the progress of API-led startups.
On the fintech side of things, M1 Finance raised $ 45 million in Series C for its consumer fintech platform, while another Robdvisor, Wealthsimple, raised $ 87 million, becoming a unicorn at the same time. And while we’re in the fintech bucket, Stripe dropped $ 200 million this week for Nigerian startup Pestac. We need to pay more attention to the African startup scene. At the small end of fintech, Alpaca raised $ 10 million more to help other companies become Robinhoods.
Before we make some more changes. Kahoot raised $ 215 million due to the boom in distance education, another trend that is inevitable as part of a larger EdTech boom in 2020 (our own Natasha Mascarenhas has more).
Turning from the private market to the public, we just have to approach SPAC for a moment. The exchange got on the phone this week from Shift with Toby Russell, now a public company, followed by a merger with Trading SPAC, namely Insurance Acquisition Corp. The initial business is only going so well, but the CEO did exactly that for us. He followed SPAC, which was really interesting:
- The shift could be made public through an IPO, Russell said, but preferred an SPAC-led start as his company wanted to adapt to raise capital to keep the company afloat.
- how so? Private investment in public equity (PIPE) which came with the SPAAC option ensured that the shift would carry hundreds of millions of cash.
- Shift also sought to explain what the CEO described as market risk. A SPAC deal can happen, regardless of what the broader markets are for. And as the company made the choice to debut through an SPAC in April, some caution, we believe, may make some sense.
So now Shift is public and newly capitalized. Let us see what happens to its shares as it comes in quarterly reporting slot. (Obviously, if it flatters, it is a bad mark for SPAC, but, on the contrary, successful trading may give SPAAC-Meadden a bit more momentum.)
A few more things and we are done. Unicorn Exits had a good week. First, Datto’s IPO continues to move forward. It set a starting price this week, which could see it above $ 4 billion. Also this week, Roblox announced that it had filed to go public, albeit privately. It is equal to billions. And finally, DoubleVerify wants to go public early next year for $ 5 billion.
Not all liquidity comes through the public markets, as we looked at the segment’s Twilio purchase this week, a deal that the exchange figured out whether it was well priced.
Various and varied
We have been running for a long time naturally, so here are just a few quick things to read for your weekend mental tea and coffee!
Next week we’re digging deeper into the Q3 Venture Capital data, a forest of which you can find here, about women founders, a topic we returned to in more depth on Friday.