Remote dealmaking, rapid-fire IPOs, and how much $250M buys you – ProWellTech
Welcome to The Exchange, an upcoming weekly newsletter that reports ProWellTech and extra Crunch on startups, money and markets. You can sign up here to receive it regularly when it launches on July 25th. You can send me an email here or talk about it on Twitter. Here we go!
Before analyzing the 2nd quarter risk capital data, this week we looked at the VC world opinion on the Zoom deal. A few months ago it was an open question whether the VCs would simply stop making new investments if they couldn’t cut them in person with the founders. This, apparently, was mostly wrong.
This week we learned that most VCs are open to making remote agreements, although 40% of VCs have actually done so. This raises a worrying question: if only 40% of VCs actually entered into a completely remote deal, how many offers occurred in the second quarter?
Judging from my inbox over the past few months, it’s been an active period. But we cannot rely on anecdotes for this topic; The exchange will analyze next week’s QC V2 data, hopefully, provided that we can group the data points we need to feel confident in our approach. Sooner.
As reported by ProWellTech on Friday, some startups are delaying capital raising for some quarters. They can do this by limiting expenses. The question for startups that are doing this is how they will find themselves when they emerge to seek fresh funds; Can they still grow at an attractive rate as they try to extend their track through the conservation of burns?
But there is another option besides waiting to raise a new round and not raising at all. Startups can increase the extension to their previous offer! Maybe I’m noticing something that’s not a trend, or not yet a trend, but there have been several startups that recently raised extensions that caught my attention. For example, MariaDB raised a $ 25 million C Series extension this week, for example. Also this week Sayari has put together $ 2.5 million in an extension of the B series. And CALA has put together $ 3 million in an extension of the suit. Finally, across the pond, Machine Labs have put together a million pounds into another seed extension this week.
I still don’t know how to numerically analyze the available venture data to tell if we are really seeing an extension wave, but let me know if you have any notes to share. And, to be completely clear, the rounds above may simply be random and non-thematic, so please don’t read them more deeply than they have been announced in the last few days and match something we’re looking at.
On the public market front, the news is all good. Technology stocks have generally increased and software stocks have hit new record highs this week. It’s almost impossible to remember how scary the world was in March and April in today’s stock market rush, but just a few months ago the shares were falling sharply.
The return to the module has helped a number of companies to make public this year such as Vroom, Accolade, Agora and others. This week has been another busy period for startups, former startups and other companies that want to leave.
In a short time to save time, this week we saw GoHealth’s first IPO range, the second of nCino (more on the finances of the two companies here), we learned that Palantir is becoming public (its financial history as best we can say is here ), and even got an IPO (S-1) deposit from Rackspace, as it once again looks to public markets.
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The IPO waters are so hot that Lemonade is still rising more than 100% from its IPO price. As long as growing companies that are miles away from making money can impose high valuations, they expect companies to continue running through the public market door.
There are fun things on the horizon. Coinbase could apply by the end of the year, or early 2021. And the Airbnb IPO is likely to arrive within four or five quarters. Get ready to read some SEC documents.
Funding rounds are worth noting
The most interesting financing round of the week was obviously what I wrote about, which is the $ 2.2 million that MonkeyLearn has put together from a couple of top investors. But other companies have raised funds and among these the following investments stand out:
- Sony poured a quarter of a billion dollars into the manufacturer of Fortnite, with a share of 1.4%. This round stands out for how small a piece of Epic Games Sony has got its hands on is small. It seems to remember the recent flood of investments in Jio.
- TruePill raised $ 25 million in a B series. In the modern world it seems difficult to have to get off the ass, go to Walgreens or CVS, wait in line and then ask someone to sell me Claritin D. huge waste of time. TruePill, which carries out the pharmaceutical delivery, cannot arrive fast enough. In addition, investors in TruePill are likely to be fully aware that Amazon spent $ 1 billion on PillPack just a few years ago.
- From the slightly unusual category, this ProWellTech title: “The UK farewell raises $ 25 million for its new approach to online writing, funerals and other death services.” Farewill is a startup name that is so bad that it probably works; I won’t forget it soon, even if I don’t live in the UK! And this deal shows how big the Internet is. There is so much demand for digital services that a company with a focus on Farewill can put together enough revenue growth to command a $ 25 million Series B.
- Finally, ProWellTech’s Ron Miller covered a $ 50 million investment in OwnBackup. What matters about this deal is the way Ron talked about it: “OwnBackup made a name for itself primarily as a backup and disaster recovery system for the Salesforce ecosystem and today the company announced a $ 50 million investment.” . What to take from that? The Salesforce ecosystem is perhaps larger than we thought.
This is the exchange for the week. Keep an eye on SaaS ratings, the latest S-1 statements and the latest funding. Chat Monday.