DigitalOcean’s IPO filing shows a two-class cloud market

This morning DigitalOcean, a provider of cloud computing services to SMBs, filed to go public. The company intends to list on the New York Stock Exchange (NYSE) under the ticker symbol “DOCN.”

DigitalOcean’s offering comes amidst a hot streak for tech IPOs, and valuations that are stretched by historical norms. The cloud hosting company was joined by Coinbase in filing its numbers publicly today.

DigitalOcean’s offering comes amidst a hot streak for tech IPOs.

However, unlike the cryptocurrency exchange, DigitalOcean intends to raise capital through its offering. Its S-1 filing lists a $ 100 million placeholder number, a figure that will update when the company announces an IPO price range target.

This morning let’s explore the company’s financials briefly, and then ask ourselves what its results can tell us about the cloud market as a whole.

DigitalOcean’s financial results

TechCrunch has covered DigitalOcean with some frequency in recent years, including its early-2020 layoffs, its early-2020 $ 100 million debt raise and its $ 50 million investment from May of the same year that prior investors Access Industries and Andreessen Horowitz participated in.

From those pieces we knew that the company had reportedly reached $ 200 million in revenue during 2018, $ 250 million in 2019 and that DigitalOcean had expected to reach an annualized run rate of $ 300 million in 2020.

Those numbers held up well. Per its S-1 filing, DigitalOcean generated $ 203.1 million in 2018 revenue, $ 254.8 million in 2019 and $ 318.4 million in 2020. The company closed 2020 out with a self-calculated $ 357 million in annual run rate.

During its recent years of growth, DigitalOcean has managed to lose modestly increasing amounts of money, calculated using generally accepted accounting principles (GAAP), and non-GAAP profit (adjusted EBITDA) in rising quantities. Observe the rising disconnect:

Startups – TechCrunch

[OurCrowd in Red Herring] OurCrowd Jobs Index Shows Startup Hires Growing Despite Pandemic

The number of jobs listed by OurCrowd’s global portfolio companies more than doubled from 350 in June 2020 to 912 in December 2020. The number of job openings in Israel rose by 400% during the same period to more than 200. The positions were advertised by 100 of OurCrowd’s portfolio of companies and funds.

Read more here.

The post [OurCrowd in Red Herring] OurCrowd Jobs Index Shows Startup Hires Growing Despite Pandemic appeared first on OurCrowd Blog.

OurCrowd Blog

[OurCrowd in The Times of ISrael] OurCrowd startup survey shows hybrid office/remote work model set to continue

Even as coronavirus vaccinations are being rolled out, only 14.3% of OurCrowd’s portfolio companies see employees working solely in the workplace by July 1.

Read more here.

The post [OurCrowd in The Times of ISrael] OurCrowd startup survey shows hybrid office/remote work model set to continue appeared first on OurCrowd Blog.

OurCrowd Blog

Bumble’s IPO Shows Dating Apps Have Changed Courting Forever

Bumble CEO Whitney Wolfe Herd has entered into a rarefied club of self-made female billionaires after the company enjoyed an IPO that…

Entrepreneur's Handbook – Medium

Finally watch Netflix shows in their original languages as you build up fluency with Rosetta Stone, on sale today – The Next Web

Finally watch Netflix shows in their original languages as you build up fluency with Rosetta Stone, on sale today  The Next Web
“nigeria startups when:7d” – Google News

Mollie’s new report shows how growth mindset may boost e-commerce merchants’ competitive edge


While profits in many sectors plummeted during lockdown last year, some other segments noted an unprecedented surge in interest. E-commerce is one such sector, which performed well in 2020. A new research by the online payment service provider Mollie sheds some light on how harbouring a growth mindset delivered a competitive edge for e-commerce merchants. Here are some notable takeaways from the new report called Growth mindset merchants: outmanoeuvring, outcompeting, and outperforming. 

Growth mindset equalled more sales and lower revenue decline

The new report by Amsterdam-based Mollie is based on a survey, which was undertaken by Coleman Parkes. The sample size was 2,500 merchants across five European countries, 500 from Belgium, Germany, France, the Netherlands, and the United Kingdom. Within each of these countries, 100 were drawn from each of the following sectors: groceries/FMCG, hospitality/food delivery, home/hobbies/lifestyle, clothing and apparel, and consumer electronics. Across Europe, 500 merchants were surveyed in each sector.

The first and foremost insight from the survey was that adopting a growth mindset gives e-commerce merchants a competitive edge. The report states that European merchants that approach with a growth mindset generate an average of 17  per cent more annual revenue from e-commerce over fixed mindset merchants. Additionally, growth mindset adoption helped merchants suffer lower revenue declines compared with their fixed mindset competitors during the first wave of COVID-19.

As per the report, about three in ten (28  per cent ) growth mindset merchants reported an increase in monthly sales during the pandemic versus two in ten (21  per cent ) of fixed mindset merchants, when compared with the same months in 2019.

Growth mindset merchants are more international

Growth mindset merchants tend to be more optimistic and ambitious about revenue growth, the study reveals. Around 93 per cent of growth mindset merchants expect to grow online revenues in the next 12 months, compared to 83 per cent of fixed mindset merchants. Additionally, the same group are also most likely to be more international in their approach. About 46 per cent of fixed mindset merchants are completely focused domestically, compared to 38 per cent of growth mindset merchants. Hence, growth mindset merchants are almost twice as likely to sell online globally than their fixed mindset counterparts.

Growth mindset merchants also offer more ways to pay and experience lower cart abandonment rates. The latter is being attributed to them tracking cart abandonment and actually addressing the root causes. What sets growth mindset merchants apart from fixed mindset merchants is that they are more international, offer more relevant ways to pay, and are more focused on finding ways to optimise their conversion.

The new report by Mollie outlines numerous ways in which adopting a growth mindset may give e-commerce merchants a competitive edge. The entire report can be downloaded from Mollie’s website. 

Startups – Silicon Canals

Robinhood’s Q4 2020 revenue shows a return to growth

Deeply funded fintech company Robinhood has been the world’s most discussed startup over the last week. After the discount trading pioneer found itself in the midst of a battle between hedge funds on one side and a slurry of retail and institutional capital on the other, Robinhood’s trading volume spiked last week.

But after the National Securities Clearing Corporation (NSCC) raised its deposit requirements before the market open on Friday, Robinhood was forced to restrict trading in a number of popular stocks. The company also drew down its credit lines and raised new capital from prior investors to stay open during a trading avalanche.

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According to a Clubhouse chat between Robinhood CEO Vlad Tenev and Elon Musk last night, the NSCC initially asked Robinhood to post $ 3 billion in reserve capital. That figure was reduced to $ 1.4 billion and later to $ 700 million after Robinhood agreed to limit certain trades. Robinhood transmitted the funds and opened Friday.

But that’s all recent news. Let’s look back further.

TechCrunch has tracked Robinhood’s payment for order flow (PFOF) revenues for a several quarters now. The key revenue source for Robinhood is trackable, as the company has to file its incomes from it. This provides a good view into the company’s growth.

Today we’re parsing its Q4 2020 data, which shows a return to sequential-quarterly growth at the trading upstart.

Of course, we won’t have Q1 2021 data for another three months, but we do have — at last — a good look at how Robinhood wrapped 2020 and some insight into why its investors were willing to put in another $ 1 billion just last week.

Robinhood’s Q4 2020

Regular readers of The Exchange will recall that after a stonking Q2 2020, Robinhood’s Q3 2020 PFOF incomes were large, but not sequentially impressive; while Robinhood likely saw sharp revenue gains from Q3 2019 to Q3 2020, when we stacked last year’s third-quarter against its second, the company’s growth had slowed enough that we were curious what would happen in Q4.

Startups – TechCrunch