I know, dilution is expected and needed, but im trying to see what to look out for so that im not diluted disproportionately from other board members, and that my shares would still be worth something in the long term. I'd be going into a board that currently has around 4 members, and i still want to be involved a good amount in the business once VCs get involved.
Amidst all the hype that Lemonade (IPO), Root (IPO), Metromile (SPAC-led debut) and other insurtech players have generated in the last year, it’s been easy to forget about Oscar Health. But now that the company founded in 2012 is approaching the public markets, one of the early tech-themed insurance companies is catching up on the attention front.
So this morning we’re digging into Oscar Health’s first IPO pricing interval, hoping to understand how the market is valuing its unprofitable health-insurance enterprise.
Recall that Oscar Health was valued at around $ 3.2 billion in March of 2018. That datapoint, via PitchBook, is dated. Oscar Health raised hundreds of millions since (per several venture-capital tracking databases, including Crunchbase) but we lack a final private valuation for the company.
Regardless, with Oscar Health now targeting a $ 32 to $ 34 per-share IPO range, we can get our hands dirty.
Let’s get some valuation numbers and then decide if Oscar Health feels cheap or expensive at that price.
Oscar Health is looking to reap as much as $ 1.21 billion in its IPO, a huge sum. The company is selling 30,350,920 shares, with 4,650,000 additional shares reserved for its underwriters. Existing shareholders are selling another 649,080 shares.
This means that after the IPO, Oscar Health will have 197,037,445 Class A and B shares in circulation, or 201,687,445 after counting shares reserved for its underwriters.
Using the company’s $ 32 to $ 34 per-share range, we can calculate a valuation minimum of $ 6.31 billion for the company (lower share count, low-end of price range) and $ 6.86 billion (higher share count, high-end of price range). That’s the company’s simple IPO valuation.
Oscar Health may also sell up to $ 375 million of its shares at its IPO price to three different funds. The company advises that the “indication of interest is not a binding agreement or commitment to purchase,” so we can ignore it for now.
Hi! I'm a high schooler who has his own startup. My first app was a free consumer app that I plan to monetize (somehow haha). It's got around 300 downloads, but after a few posts on reddit, the growth is slowing down. My app is an innovative productivity app which has some appeal for users. Any advice on how to start getting more downloads? What marketing methods have you guys found the best to get apps out there? I have a little bit of cash on hand (although i'm hesitant to use it) and don't have many connections. Thanks!
Hi all , I am developing a marketplace platform and planning on launching it in a big city for the MVP. I have a few questions .
1: what’s the best route to go about for acquiring initial users ( consumers + producers) 2: are there any tips you could give me for launching the product whether it be a certain community online etc
A few days after raising €1.2B with a capital increase, Delivery Hero, a Berlin-based food delivery platform, has launched an independently managed early-stage venture capital fund – DX Ventures. With the fund, the German company is planning to invest in disruptive founder-led companies.
Duncan McIntyre, Managing Director of DX Ventures, says: “Being a family of founders, investing in entrepreneurship is an integral part of Delivery Hero’s journey. We understand the opportunities and challenges these startups are facing because we have gone through them ourselves. Delivery Hero has built a strong track record of investing in leading technology companies and gained a deep understanding of the global delivery and food industries. We pride ourselves on being able to offer support to founders and the companies we invest in and guide them on their path to lasting success.”
Plans to deploy €50M initial capital
At present, DX Ventures has an initial capital of €50M to invest in startups across various industries including, on-demand services, food technology, sustainable innovation, artificial intelligence, fintech, and logistics.
Duncan McIntyre, who joined Delivery Hero in 2014, heads DX Ventures. Notably, he has helped the company with its listing on the Frankfurt stock exchange in 2017, and expansion into the different markets as well through over 30 M&A transactions.
Centred on building long term partnerships
The DX Ventures team is responsible for over €500M of minority investments across a wide range of industries, including global success stories such as Rappi, Glovo, and Impossible Foods.
DX Venture says that the fund’s approach is centred on building long-term partnerships with founders to provide support throughout the lifecycle and actively create value.
Fundraising, deal approval and more
A few days back, the German food delivery company raised €1.25B by issuing 9.44 million new shares to institutional investors at €132/share, increasing its current share capital by around 4.7 per cent.
Notably, the Berlin food delivery company also received regulatory approval of its $ 4B (approx €3.6B) Woowa Brothers takeover deal as well. The company expects to receive the final written approval and closing to occur in the first quarter of 2021.
Currently, Delivery Hero operates in 50 countries across Asia, Europe, Latin America, the Middle East, and North Africa. It is valued at €24.5B and raised $ 6.6B (approx €5.4B) in funding to date. Headquartered in Berlin, Germany, the company has more than 27,000 employees.
Hi guys, new user here.
For the past year I've had an idea for a product. After doing through research and brainstorming ideas/designs, I'm now at a point where I can begin to actually create the first prototypes for testing.
To create the prototypes requires some funding and supplies (<$ 1,000). Unfortunately, I'm a single parent and all money from my jobs go straight to bills, food, and other necessities for taking care of my family, so I've been trying to look to see where I might be able to get initial funding.
I'm not all to familiar with startups, but I know there are sometimes small grants that support people in the first stages of their business ideas. I've spent a good amount of time searching for these, but I'm having a hard time finding anything useful. Because I'm new to this space, it may just be that I'm not looking in the right places or that I don't know the right keywords to search, which is what brings me here! I wanted to ask you guys if there are any places or organizations that I should look at where individuals can apply for grants to initiate their ideas.
I also know there are investors and some government organizations that fund emerging ideas, but from my understanding, a lot of them offer loans that will need to be repaid and investors are looking for people who are committed to the idea. At my current state, I'm leaning away from going this route because I'm not fully committed to my idea and won't be for a while, so it wouldn't be good to risk someone else's money this way. I also don't know if my idea will work (I'm sure I'll need to do a lot of refinement after initial testing), so I wanted to steer away from loans to avoid the financial risk in case my idea fails because I know I wouldn't be able to afford repaying it.
I guess overall I just want to create a prototype to test it, which would allow me to continue refining my idea slowly whenever I find the time. And if things end up looking good (both for my idea and my family), then I'd partner with my best friend and we'd plan to approach investors or apply for business loans to try to get the idea off the ground.
I don't know if my question is appropriate for this subreddit, so please let me know if it's not. Thanks a lot for taking the time to read this.
Company Valued at $ 165 million following offering; Proceeds to go towards further solidifying its commitment to the marketplace
Read more here.
On the heels of news that DoorDash is targeting an initial IPO valuation up to $ 27 billion, C3.ai also dropped a new S-1 filing detailing a first-draft guess of what the richly valued company might be worth after its debut.
C3.ai posted an initial IPO price range of $ 31 to $ 34 per share, with the company anticipating a sale of 15.5 million shares at that price. The enterprise-focused artificial intelligence company is also selling $ 100 million of stock at its IPO price to Spring Creek Capital, and another $ 50 million to Microsoft at the same terms. And there are 2.325 million shares reserved for its underwriters as well.
The total tally of shares that C3.ai will have outstanding after its IPO bloc is sold, Spring Creek and Microsoft buy in, and its underwriters take up their option, is 99,216,958. At the extremes of its initial IPO price range, the company would be worth between $ 3.08 billion and $ 3.37 billion using that share count.
Those numbers decline by around $ 70 and $ 80 million, respectively, if the underwriters do not purchase their option.
So is the IPO a win for the company at those prices? And is it a win for all C3.ai investors? Amazingly enough, it feels like the answers are yes and no. Let’s explore why.
Slowing growth, rising valuation
If we just look at C3.ai’s revenue history in chunks, you can argue a growth story for the company; that it grew from $ 73.8 million in the the two quarters of 2019 ending July 31, to $ 81.8 million in revenue during the same portion of 2020. That’s growth of just under 11% on a year-over-year basis. Not great, but positive.
The Vista Equity Partners -backed company was picked up by the private equity firm back in 2017. Vista is back in the news lately for several reasons, some stemming from executive shenanigans — read: tax evasion and huge penalties — but at least what’s coming from Datto’s camp is good tidings.
How so? Vista bought Datto for around $ 1.5 billion, and is set to make billions on its exit, based on the company’s expected IPO pricing.
Per the data firm’s latest S-1 filing, Datto is targeting a $ 24 to $ 27 per share price range. Here’s the math:
- Total shares outstanding after IPO, sans underwriters’ allotment: 157,548,740 shares
- Total shares outstanding after IPO, with underwriters’ allotment: 160,848,740
- Max valuation at current prices, sans underwriters’ allotment: $ 4.25 billion
- Max valuation at current prices, with underwriters’ allotment: $ 4.34 billion
Those two final numbers are dramatically bigger than the $ 1.5 billion that Vista is said to have paid for Datto.
How has Datto managed to generate so much value in the last few years? In financial terms, the company grew to a run rate of around $ 500 million, based on its Q1 and Q2 2020 revenue results. That gives the company a revenue multiple of less than 10x at its current IPO price maximum.
And that price makes sense. Datto is not growing very quickly, just 16% from H1 2019 to H1 2020, for example. The company did recently become profitable, however, which helps its valuation case. But more importantly, between 2017 and 2020 we have seen revenue multiples for software companies expand. That, plus Datto’s growth since 2017, have repriced it far above its sale price.
For Vista, it’s good news. Provided that they don’t get into tax issues over this particular set of returns. More on Datto as it prices and debuts.