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Last week, according to Crunchbase data, there were 23 rounds worth $ 50 million worldwide. The rounds were worth a total of $ 3.72 billion, an average of $ 80 million, and an average size of $ 161.9 million. So if you got the impression that late stage money is under threat, this is not the case.
And it’s not difficult to understand why; As the public markets flirt with new record highs, startups can grow in the late phase thanks to strong comps. High public valuations help late stage startups defend their own prices, just as rising stocks can help direct venture capital investments to specific sectors in earlier phases of the startup country.
It is also a situation that can lead to a series of IPOs that we see shortly before the end. With Agora this week and lemonade in the starting blocks next to Accolade, nCino and GoHealth it is hot.
This week, The Exchange and TechCrunch tried to make the matter more general, asked questions about the upcoming public offer of Lemonade and tried our best to investigate the S-1 filings of nCino and GoHealth (two IPOs) Not from California or New York), analyzes Accolade’s proposed IPO rating after resuming its march on public markets and is working to improve Agora’s fairly solid IPO prices.
But there was more going on. At Extra Crunch and TechCrunch this week, we also chewed on Lemonade’s first blow at IPO pricing (after the previous review) and the good thing about it (better than expected) and talked about the multitude of companies that we are on going public in the coming quarters and years.
There are reasons to expect more of this in the future in terms of IPO density. Looking ahead to the third quarter – just a few days now – some VCs expect a flood of software IPOs as many unicorns try to get out before the elections and ratings are very high.
Redpoint’s Jamin Ball believes this:
You can think of today’s public markets as a revision for unicorns that should go public last year but postpone. Or in racing it is a free pit stop for cars that have made a mistake. But if you don’t come out while the receiving is so good, what the hell have you been waiting for? That’s the multi-billion dollar question.
Money, markets, mistakes
Find out about the week’s biggest market news and how we feel about it. As always, we will turn to private markets, but talk about public technology companies if they matter to the startup world.
Social firms had success at the end of the week after Snap, Facebook and Twitter declined sharply as the trade ended, after major advertisers like P&G, Unilever and Verizon * decided that it might actually matter which type of content appearing in their ads against. Keep in mind that this is kind of ad dollar bucking Not New; Publishers have been dealing with such things for ages. However, social tech companies haven’t scored as many hits as they could have over time. Welcome to reality. For startups? It is not good for social startups that Facebook and Twitter suffer very public knocking. If they wanted to raise new capital for startups, that is.
SaaS startups – both early and late – should be aware that the recent flood of public SaaS earnings has gone pretty well. There were some dropouts, but it could have been worse. And with SaaS shares on the rise again, it’s a great time to be a SaaS company. If you use metrics, you’ll find over a dozen public SaaS companies that will generate more than 25 times their revenue next year. That’s crazy.
We are tracking the pace of SaaS investments in 2020. Crunchbase has 648 rounds for companies that were labeled SaaS in 2020 through June 26, 2020. In the same period last year there were 1,135. The dollar fell from $ 12.15 billion in the prior-year period to $ 9.36 billion this year. Now there is Risk data remains there, but it’s still not exactly what we expected. Maybe medium-sized SaaS startups have problems?
The Zoox contract with Amazon shows to what extent self-driving laps in the private market rated startups before reality. Self-driving engineers were once the unobtanium of the job market. Now we ask ourselves. Still, a $ 1 billion deal isn’t the end of the world for any company. For self-driving startups, this could mean the end of the good times in the industry if we hadn’t already passed the zenith and made a step towards Nadir.
Cyber security is still hot, hot, hot, as Salesforce has invested capital in security startup Tanium this week. Tanium is now worth $ 9 billion. IPO 2019 CrowdStrike has performed better as a listed company while making its sector look rosy. Part of this charity could play a role here.
Fintech is difficult. Uber apparently withdraws from his fintech push. Sure, every company will become a kind of fintech company over time, but apparently not. Chime et al. Downshifting from his formerly hectic fintech struggle shows that not every large company will be able to take a piece of this special consumer pie.
And finally, the excellent Kate Clark has comments on the rating trends at startups: “The median for Series C or later financing rose to a new high of $ 120 million of $ 80 million in 2019 in the first half of this year, according to research firm PitchBook at The Information. “It’s still good times, let’s say.
There’s a lot more to tell in the worlds of startups, money, and markets, but we have to stop here. This newsletter appears every Friday as soon as all pipes are connected. Subscribe here (100% free) to miss exactly zero entries. Chat soon!
* Verizon owns the Verizon Media Group, which owns TechCrunch, which in turn is mine.