What would Databricks be worth in a 2021 IPO?

TechCrunch recently covered Databricks’ financial performance in 2020, contrasting its recent performance to some historical 2019 data that the company shared.

The data-and-analysis-focused unicorn grew its annual run rate 75% to $ 350 million, compared to its year-ago quarter, meaning that the firm is growing well at scale. TechCrunch described it as “an obvious IPO candidate” at the time, a little under two weeks ago.


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Since that point, Bloomberg reported that Databricks is indeed charging ahead with an IPO, a transaction that could come as soon as the first half of 2021, writing that it “has held talks with banks but has yet to hire underwriters” for its flotation.

That is enough news for us to have fun with. So, this morning let’s collate all that we know about the company’s financial performance, mix in some current market valuation metrics, and do some light projecting of Databricks’ growth. Our question? What might the company be worth at the end of Q1 or Q2 next year.

Of course, there are some worrying signs on the horizon that the stock market is about to shift lower, but, hey, there’s no need to be a pessimist this early on a Monday morning. Let’s get into the math.

Databricks’ potential IPO valuations

Starting with some history, Databricks was worth $ 6.2 billion after its September, 2019 Series F round of capital. The company raised $ 400 million in the transaction, its largest round to-date by $ 150 million. That capital should get the company to an H1 2020 IPO, provided that its spending didn’t go all old-school Dropbox.

Startups – TechCrunch

Ant Group could raise as much as $34.5B in IPO in what would be world’s largest IPO

The long-anticipated IPO of Alibaba-affiliated Chinese fintech giant Ant Group could raise tens of billions of dollars in a dual-listing on both the Shanghai and Hong Kong exchanges.

Shares for the company formerly known as Ant Financial are expected to price at around HK$ 80, or roughly 68 to 69 Chinese Yuan. The company is selling around 134 million shares in the Hong Kong portion of its debut, worth around $ 17.25 billion American dollars at HK$ 80 apiece.

Given that the share sale is expected to raise a similar amount of money from its Shanghai listing, the company’s IPO could raise as much as $ 34.5 billion. That tally would make the debut the largest in history, besting the recent Aramco IPO that raised around $ 29.4 billion.

Alibaba owns a 33% stake in Ant Group. At its currently expected share price, Ant Group would be worth as much as $ 310 billion, according to the New York Times, or $ 313 billion per CNBC.

Ant Group’s huge IPO fits its own epic scale. As TechCrunch reported in July, Ant had around 1.3 billion annual active users in March of this year, a number that could have risen in recent quarters. Ant’s Alipay competes with Tencent’s WeChat Pay in the huge and lucrative Chinese market.

The Ant Group IPO could be viewed as a moment in which the United States stock markets showed weakness. When Alibaba went public back in 2014, it did so via the New York Stock Exchange. The Chinese tech giant later dual-listed on the Hong Kong exchange. To see Ant Group dual-list on the Hong Kong and Shanghai indices without a float in New York shows what is possible outside of the United States when it comes to capital financing.

Fintech startups have broadly seen their fortunes rise during 2020, as the global pandemic changed consumer behaviour and moved more commerce and payments into the digital realm. And IPOs have generally performed strongly as well, meaning that Ant Group could find a few tailwinds for its equity when it begins to trade.

Ant has not been content to stick to its knitting, keeping itself busy by investing in other startups. The company took a small stake in installment-payment service Klarna earlier this year, for example.

At a valuation of more than $ 310 billion, Ant Group would be worth about as much as JPMorgan Chase, the most valuable American bank today. It would also best U.S.-based digital payments leader PayPal, which is currently valued at $ 236 billion, as well as Square, which is valued at $ 77 billion.

Startups – TechCrunch

Would love to hear your advice…

Back in March I created a working breadboard version of my product. Zoom ahead to today and I now have that breadboard on a printed circuit board (rev 3 of the pcb, sigh… the first two revs turned into asian paper weights, but I learned a lot in the process) with a 3d printed enclosure.

I'm a totally rookie at this so here's what I was thinking for next steps, would love to hear your advice.

1.) Get product in front of people. I have five working prototypes so I'm hoping to sprinkle them around town where I live.

2.) Watch people use the product and collect feedback.

3.) If all goes well, manufacture more and see if I can turn this into a business. To date only a hand full of people have seen the product but for each person who has seen it, it gets rave reviews so I hopeful I have a winner on my hands. 😀

This is kinda where I come off the rails. I'm an engineer at my core and the business side gets a bit lost on me. Should I incorporate, then open bank account, then pound the pavement to see if I can sell my product. Any thoughts or suggestions would be great!

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Startups – Rapid Growth and Innovation is in Our Very Nature!

For those on here that have been working as a VA what would be the better option?

For those on here that have been working as a VA what would be the better option?

So I've decided to start up my own VA business but I'm stuck as to what I should call it. Originally I was going to call it "Outsource*****" but I'm not sure whether I should now because it's meant to be a virtual assistant business with Mabey some services out souced. I don't want it to be a full-on outsource company. So I'm not too sure how the name would work out even though it is unique compared to the other VA companies.

Thanks.

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Got an idea for an app and would like to develop the idea further how

So I got an idea for an app that I think could work, everyone I have asked so far thinks it’s a good idea and can’t find many problems with it.

However my problem is I don’t know where to go from here how do turn my idea of an app into a business or company?

Just would like more knowledge of how it all works, as this is all new to me and I want to test the waters

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Would Your Startup Survive a Cyberattack?

A cyberattack can instantly cause significant harm to a business. But the chance of a startup being hit is slim. So why bother with robust precautionary measures. Right? 

Wrong.

Cybercriminals aren’t picky about who they target and, with fewer resources to protect themselves, smaller businesses are actually more likely to be a victim.

You might think your startup doesn’t hold data that’s of any interest to a hacker, but unfortunately, that’s not the case. Payment details, personal information, company financials and passwords are all valuable digital assets to a cybercriminal. So, if you store any data digitally, your business is at risk. 

Taking an “it’ll never happen to me” approach to cyber risk results in many startups and small businesses being unable to recover from an attack, simply because they’re completely unprepared to deal with the fallout.

Cost is another major factor preventing startups from getting the cyber protection they need. When your business is just starting out, every cent counts. It can be difficult to justify the cost of investing in the means to keep your data secure, but the cost of not doing so can be far higher, and can put the future of your startup in jeopardy before it’s even had the chance to get off the ground. 


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How can startups protect themselves from a cyberattack?

All startups should:

  • Use anti-virus software and install firewalls
  • Back up their systems and data on a regular basis
  • Get an IT security expert to check for vulnerabilities
  • Purchase a cyber liability insurance policy
  • Perform stress tests on IT infrastructure
  • Use hard to guess passwords, encryption or other authentication methods
  • Keep track of what software and apps are being used
  • Establish a data security policy
  • Train employees on cyber threats
  • Be vigilant when using public Wi-Fi, clicking links or visiting websites
  • Create a backup so systems and data can be restored

Prevention is better than cure, but sadly, even startups that do take cybersecurity seriously will never be able to prepare for every risk. This doesn’t mean that planning for a cyber incident should be ignored. In fact, small businesses that are unprepared are far more likely to have to shut down for good.


Related: Don’t Leave Your Startup Vulnerable to a Cyberattack

What action should a startup take if it is hacked?

It’s not so much a case of “if” your organization will suffer a cyberattack but “when.” With the odds stacked against you, it’s important to know what to do if data is compromised.

Follow these 10 steps to make sure your startup survives a cyberattack.

  1. Make cyber part of your risk planning

With more and more data being created and stored digitally, developing a risk recovery and business continuity plan that includes a detailed step-by-step plan of what action needs to be taken following an incident is crucial. 

Many startups are completely reliant on technology to run their business. Think of the impact of not being able to access files, get online, or take payments through your website and use this as a starting point to plan for every scenario involving digitized data. 

Being able to refer to this document when you need it will ensure processes are followed in the correct order and that nothing important is overlooked.

  1. Tell your insurer

With cybercrime on the rise, many insurers have started offering cyber policies to small businesses.

However, 91 percent of small business owners don’t have cyber liability insurance, perhaps because of a lack of awareness about what the coverage offers. 

A cyber liability policy can take care of most, if not all, of the expense that comes with managing the aftermath of a breach, including:

  • Investigating the breach
  • Restoring data, systems and your website
  • Informing customers
  • Legal fees and compensation payouts if you’re sued for someone’s data being compromised
  • Legal defense if you face legal action by local or federal authorities
  • Regulatory penalties or fines
  • Income lost and extra expenses if a cyberattack stops you doing business
  • Credit monitoring for victims of identity theft
  • Reputation management 
  • Resources to provide support for customers

Not only are costs covered, some insurers will source the experts your business needs to get back on track, leaving you with more time to focus on running your startup. 

  1. Find out what happened as soon as possible

When it comes to investigating how a breach occurred, time is of the essence. 

Just a few common reasons a breach may have occurred are:

  • A device was lost or stolen
  • Weak passwords were used
  • Human error (clicking suspicious links in emails or being tricked into giving out security details, for example)
  • Not keeping IT systems and software up-to-date
  • Malicious software/viruses
  • Using an unsecured network to access the internet (such as public Wi-Fi)

Startups are far less likely to have an in-house IT security expert who can investigate what went wrong. If that’s the case, it’s time to bring someone in to help as soon as possible. 

  1. Bring in an IT expert

It can be difficult to pinpoint the exact reason a breach occurred. Not to mention the fact that vulnerabilities could have been overlooked even after the incident. An IT expert can assess the situation, provide guidance on how to remedy the issue, and offer support to get systems back up and running.

  1. Getting back online

After an attack, it might be necessary to wipe data from the network or devices, or revert to a previous version, which is why it is so important to always keep a backup in order to limit the impact of data loss. Bear in mind that even once data and systems have been restored, there may be delays caused by reconfiguration of key settings, including resetting passwords and updating user access levels. 

  1. Determine whether it’s possible to do business

If you haven’t been able to get systems back online or retrieve data, you may not be able to get back to business as usual straight away. Even if the recovery process went smoothly, if the breach is severe, it may be a while before systems, websites, or software are fully operational. 

  1. Contact local law enforcement

Like any other crime against your business, cyberattacks need to be reported to local law enforcement. Yet many small businesses are unaware they should contact the police, with the majority leaving out this important step in the recovery process. 

After data has been compromised, your customers will want to know you are taking the breach seriously. Although opening an investigation may slow down recovery efforts in the long term, demonstrating your startup is dedicated to taking action against the perpetrators can prevent the headaches a PR crisis can cause further down the line.


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  1. Hire a PR firm specializing in crisis management communication

How you handle announcing a cyber incident can make or break your startup’s reputation. While a big brand may have the client base to take a knock to their customer perception, startups don’t. This is why getting the messaging right following a crisis is so crucial. 

Working with a PR agency that can distribute a response helps open up lines of communication by letting customers know your business is taking the breach seriously, and is taking the necessary steps to resolve the issue.

  1. Make sure customers and regulators are updated

Once the word is out, your business will need to outline exactly what’s being done to put customers’ minds at ease. This may include things like hiring additional staff to offer support and advice to concerned customers, or offering credit monitoring for free to those affected.

If your startup has to adhere to regulations, it’s likely you’ll need to inform relevant bodies about the breach. There may be fines to pay, especially if the incident occurred due to non-compliance.

  1. Review and update recovery plans

Once you’ve successfully deployed all steps in the recovery plan and things are getting back on track, it’s important to review how effectively the incident was managed, what could have gone better, and what needs to be done to prevent future occurrences.

Reviewing the plan can present an opportunity to update policies around data security, provide staff training on cybersecurity, audit systems and software to make sure they are up to date, and schedule time to perform stress tests to spot any vulnerabilities in IT security.

Startups are at high risk of being involved in a data breach. Even a single cyber incident can push an organization to breaking point, which is why IT security needs to be made a priority no matter how big (or small) a business is.

The post Would Your Startup Survive a Cyberattack? appeared first on StartupNation.

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The Future of Work: Study Shows 91 Percent Would Prefer to Continue Working Remotely

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A survey carried out by a leading tech PR agency has discovered that 9 out of 10 staff members would prefer to have the option of working remotely.

In the research carried out by Eskenzi PR, which covered over 1,000 full-time employees in the U.K., the sentiment was that employees enjoyed working from home during the COVID-19 pandemic and would like to continue doing so more in the future. Approximately 54 percent of participants said that they found commuting a “waste of time” and they benefited from greater levels of productivity at home.

“This survey shows that for the first time ever, people have had a taste of working from home and they love it because they’re more relaxed, they don’t need to travel and can spend time with their family and pets,” Yvonne Eskenzi, founder at Eskenzi PR, said.

One-third of participants said that they would prefer a mix of working at home and in the office, stating that this would be the ideal scenario.

A quarter of respondents said that they would like to work from home one day a week, and 35 percent said that they would prefer to work from home two to three days per week.

“We can only hope that this great remote working experiment has shown employers that their staff can be trusted to work just as productively from home; particularly as it also appears to have a positive impact on their wellbeing, as well as the environment. This can also be good for business productivity and profitably, as they’ll need less office space with fewer people there 100 percent of the time,” Eskenzi said.

Interestingly, those employees over the age of 55 had a slightly greater inclination to go into the office, with 14 percent wanting to return to office.


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In the survey, Rory Woodbridge, senior product marketing manager at Whereby, said that there was always a big concern with employers and trust issues when having staff work outside the office. However, there were often exceptions for those who had small children or if someone was physically unable to access the office, he said.

“Today, tools like Whereby, Zoom and Slack allow the effective management of remote teams, so all the technology is at your disposal – and remote working is something that could become more normal than going into an office,” Woodbridge said.

“Originally, people used video conferencing when they were located across the country or in different parts of the world. But today, with most of the population working remotely, using video calls is part of everyday life and probably one of the reasons why people like working remotely.”

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The post The Future of Work: Study Shows 91 Percent Would Prefer to Continue Working Remotely appeared first on StartupNation.

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Would this be a good way to build reputation for some software?

So I built a few different software programs one grows your followers on a social site (not the one you’re thinking).

The other basically spams 1300 popular groups on a social site (not the one your thinking).

Using the 2 have gained me personally a good amount of daily web traffic but I’m unsure if they will work for anyone else because my site isn’t the same as everyone else.

It might work for me but not for anyone else.

So I was thinking about starting a sub Reddit and the only people who can post are ones that actually used the software regardless of it working or not, good or bad reviews I don’t care.

I want people to know it might not work for them due to what their site is about, product/blog/ect..

There’s no telling what will or won’t work as I’m only testing it with one site atm.

So should I offer the software for free to a few people and give them one free day using it? Build up some reviews and then start marketing it?

Does this sound like good idea or is there a reason I shouldn’t?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

Has anyone previously launched with a private beta and then public beta? What did you learn and what would you do differently?

I'm starting to build an MVP and will then create a private beta, followed by a public beta if it is successful. Naturally it's both daunting and exciting. I'm looking for lessons from people who've done it before. Some questions I have

  • How long (roughly) should I expect each stage to last?
  • Did you stick to the KPIs you set out for the beta programs?

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Startups – Rapid Growth and Innovation is in Our Very Nature!

How much would software developers charge?

I’ve tried and tried but I can’t seem to find a technical partner with enough experience and knowledge to develop an app or software. I have 2 app ideas and 1 SaaS product idea that I’d at least like to get a working prototype of. Unfortunately for me I don’t have the programming knowledge nor the network to find someone capable of helping me with my concepts. So now I have to ask what the average going price of hiring developers is and what do you recommend I do other than hiring the pros?

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Startups – Rapid Growth and Innovation is in Our Very Nature!