Squarespace announced this afternoon that it will go public. The online website builder and hosting service is a venture-backed entity, which lifted the Series A and B rounds in 2010 and 2014 respectively. According to Crunchbase data, these deals were worth 78.5 million overall. dollars.
But Squarespace is perhaps best known for its epic, $ 200 million-era 2017-era secondary round funded by General Atlantic. A secondary round is a transaction in which an external party buys shares from existing shareholders, instead of the company issuing the new stake. Some private companies perform secondary transactions when they do not need additional capital, but are nowhere near a liquidity event.
The 2017 transaction fits well with the company’s upcoming IPO in 2021.
At the time ProWellTech reported that the company had a turnover of approximately $ 300 million and was profitable.
With the filing, Squarespace joins a growing list of companies pursuing public markets in recent months. At the end of 2020 C3.ai, DoorDash and Airbnb are listed. To kick off 2021, Affirm and Poshmark have listed themselves to great effect. Coinbase has filed, Robinhood is a hot IPO prospect, and now Squarespace is throwing its hat in the ring.
Squarespace’s repository is private, which means we’re looking forward to a future public S-1 from the company. Here are his own words on the current state of affairs:
Squarespace, Inc. today announced that it has confidentially filed a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). The registration statement is expected to take effect after the SEC completes its review process, subject to market conditions and other conditions.
Since Squarespace is a software company, a cloud company, and a company with a hand in the e-commerce space, we can only assume that it will suffer from a severe lack of investor interest when dealing with file, price and listing.1 After all, we haven’t seen a hot software IPO for weeks.
Hats off to Squarespace for freeing us from the news stasis. Now let’s go back to our nap.
1This is sarcasm.