| | | | | Airbnb takes IPO crown for 2020 | |  | | Airbnb's founders, from left: Joe Gebbia, Nathan Blecharczyk and Brian Chesky (Mike Windle/Getty Images) | | | In 2020's largest deal yet, Airbnb has finally pulled off its long-awaited IPO, raising $3.5 billion and capping a drawn-out exit for its venture and private equity backers. The Wall Street Journal and Bloomberg report that its shares were sold at $68 apiece, giving the pioneering home-rental giant a fully diluted value of $47 billion.
Airbnb's final price for the 51.6-million-share offering was revised upward twice from an initial estimated range of $44 to $50.
The company's haul of $3.5 billion marks the largest of the year, according to PitchBook data, beating out DoorDash's $3.37 billion offering and deals from Snowflake and Palantir. It also sets up a massive payday for Airbnb's top shareholders, Sequoia, with a 16.5% pre-IPO stake, and Founders Fund at 5.4%.
Airbnb has had a topsy-turvy year, after securing $2 billion in funding at a $18 billion valuation in April—down from $31 billion in 2017. But under CEO and co-founder Brian Chesky, the company proved resilient during the pandemic, pulling off a rebound in bookings over the summer that led to a third-quarter profit.
Related read: Airbnb shows pandemic resilience in IPO filing, but expects continued virus impact | | | | | | | | | | Understanding Dyal and Owl Rock's SPAC spectacle | |  | | (Fanatic Studio/Getty Images) | | | Dyal Capital Partners and Owl Rock Capital may be on the brink of a deal that would be both highly complex and highly unusual. The two firms are in talks to merge and go public by combining with a special-purpose acquisition company sponsored by HPS Investments, a potential transaction involving a web of already-intertwined firms that could have major implications for GP stakes investing and the rest of the private equity industry.
What are the motivations behind the possible groundbreaking move? Our new analyst note examines all the angles, including why the potential for conflicts of interest might be overstated and how the recent emergence of a valuation gap between the public and private markets could be driving Dyal's deal: | | | | | | | | | | A message from ChicagoNEXT & P33 | | | | Chicago maintains record MOIC | | In 2019, the Chicago venture ecosystem closed a record 302 financings for an aggregate $2.2 billion in VC invested. Things didn't change much even during the tumult of 2020. Funding levels stayed resilient—190 deals closed for $1.6 billion through the end of September. The 2020 Chicago VC Ecosystem Report analyzes these trends across a plethora of datasets, exploring how such funding levels relate to exit volume, identifying the most active investors, and listing the top US metro areas by their exit multiple on invested capital—which once again has shown Chicago in the lead.
Read the report | | | | | | | | | | DoorDash makes a splash in blockbuster trading debut after IPO | |  | | DoorDash CEO Tony Xu became a billionaire after the company went public on Wednesday. (Kimberly White/Getty Images) | | | DoorDash's stock price shot up following its IPO, rising 86% to give the company a market cap of around $60 billion.
The reception proves that investors are still clamoring for growth stocks in a distressed economy. It also underscores how DoorDash's strategic plays have paid off during the pandemic, making it the market leader in restaurant delivery and minting its three co-founders as billionaires: | | | | | | | | | | CVC sea change: Corporate venture on the rise | |  | | (Cavan Images/Getty Images) | | | Corporate venture capital looks very little today like it did a decade ago. Underscoring that contrast, so-called CVC investors have been some of the most enduring players in the pandemic-shaped deal landscape of 2020.
Through Q3, corporate investors were involved in roughly 26% of this year's US venture deals, according to PitchBook data. Those rounds together made up more than half of all venture dollars invested in the period. In a new research note on the sea change in CVC, PitchBook analysts' takeaways include: - Corporate venture funding is likely to grow despite the disruption caused by the pandemic, and indeed in response to that upheaval
- A large number of corporations have integrated startup investing into their growth strategy, with more expected to follow suit
- CVC's emphasis on strategic investment is increasingly turning to financial motives
| | | | | | | | | | The Federal Trade Commission and more than 40 US states want to break up Facebook, the latest escalation in the ongoing battle between regulators and big tech. [The New York Times]
A few years ago, a flock of entrepreneurial young drivers in Kenya bought Uber's promises about driving for the company. Now, many of them are drowning in debt. [NBC News]
The wild tale of Patrick Byrne, a visionary dot-com founder with a penchant for unusual beliefs who, more recently, has taken a starring role in a conspiratorial saga for the ages. [The New Yorker]
In a new study, Apollo Global Management found that there are fewer than 100 Black executives in the entire US private equity industry. [Bloomberg] | | | | | | | | | | | Since yesterday, the PitchBook Platform added: | | 373 Deals | 1361 People | 401 Companies | 23 Funds | | | | | | | | | | | | | | | | | | | | 2019 Vintage Global Secondaries Funds | | | | | | | | | | | PitchBook Webinar: A closer look at cash flow management solutions | | Join us Dec. 17 for a conversation around cash flow management solutions—a topic that can be challenging even for the most sophisticated investors. During the discussion, PitchBook analysts will examine: - The mechanics of PitchBook's cash flow models
- How the models leverage PitchBook data
- Common questions our clients have about the models
Register to secure your spot | | | | | | | | | | | | Wiz emerges from stealth with $100M | | | | | | | | | Reneo Pharmaceuticals reels in $95M for genetic disease treatment | | | San Diego-based Reneo Pharmaceuticals has raised a $95 million Series B co-led by Novo Ventures and Abingworth. Founded in 2017, the clinical-stage pharmaceutical company is developing therapies for individuals with genetic mitochondrial diseases. The company was valued at $90 million in May 2019, according to PitchBook data. | | | | | | | | Firebolt launches with $37M | | | | | | | | | WorkRamp banks $17M Series B | | | WorkRamp has raised $17 million in a round led by OMERS Ventures, with participation from Bow Capital. The San Francisco-based company is the developer of a workforce training platform used by employers such as PayPal and Intercom. Founded in 2015, WorkRamp was valued at $33 million in June 2019, according to PitchBook data. | | | | | | | | Career Karma secures $10M | | | Career Karma has raised a $10 million Series A led by Initialized Capital. Founded in 2018, the San Francisco-based company is the creator of an edtech platform that connects students with coding bootcamps at some 7,000 trade schools, colleges and universities. Initialized Capital managing partner Garry Tan has joined Career Karma's board. | | | | | | | | Snowflake debuts as venture investor | | | Cloud-data specialist Snowflake, which reached a $70 billion valuation with its public debut in September, has made its first corporate venture capital deal. Snowflake Ventures has invested in DataRobot, a Boston-based data-science startup that raised a $270 million round led by Altimeter Capital in November. Snowflake Ventures, which launched last month, targets investments of between $1 million and $5 million in data-related companies. | | | | | | | | | | | | PE firms continue chasing $15B+ deal for DirecTV | | | TPG Capital and special-purpose acquisition company Churchill Capital Corp. IV have made late-stage bids to acquire DirecTV in a deal that would value the satellite TV company at over $15 billion, The Wall Street Journal reported. Apollo Global Management has also reportedly made a bid for DirecTV valuing it at less than $15 billion. AT&T has owned DirecTV since acquiring it for roughly $49 billion in 2015. | | | | | | | | Platinum to scoop up Ingram Micro in $7.2B deal | | | Platinum Equity has agreed to acquire Ingram Micro from HNA Group, valuing the California-based distributor of computers and other tech products at $7.2 billion. HNA paid about $6 billion to acquire Ingram in 2016. The Chinese conglomerate rejected a 2018 takeover bid from Apollo Global Management, saying the offer was too low, according to The Wall Street Journal. | | | | | | | | Cardtronics shares climb after Apollo bid | | | | | | | | | Partners Group to purchase Wedgewood Pharmacy in SBO | | | Partners Group has agreed to acquire Wedgewood Pharmacy, a provider of compounded medications for animals with acute and chronic conditions, from New Harbor Capital, which purchased the business in 2016. Founded in 1980 and based in Swedesboro, N.J., Wedgewood has over 700 employees throughout New Jersey, California, Colorado and Arizona. | | | | | | | | Charterhouse to take LCP stake from Inflexion | | | Charterhouse Capital Partners has agreed to acquire a minority stake in financial advisory firm Lane Clark & Peacock from Inflexion. The partners of LCP, which was founded in 1947 and is based in the UK, will increase their stake in the firm as part of the deal. LCP specializes in pensions, investment consulting and insurance. | | | | | | | | JMI does growth deal with Swiftly | | | JMI Equity has led a strategic investment in Swiftly, the creator of a data platform for public transit, with Shakti Ventures also participating. Based in San Francisco, Swiftly has previously raised funding from Renewal Funds, Aster Capital, Wind Capital and others, attaining a $37.5 million valuation in 2019, according to PitchBook data. | | | | | | | | | | C3.ai jumps 120% in market debut | | | Enterprise software specialist C3.ai closed its first trading day on the NYSE up 120% over its IPO price. Led by former Oracle executive Tom Siebel and backed by TPG Growth and Baker Hughes, the company raised $651 million after its IPO priced at $42 per share, well above the expected range of $36 to $38. At Wednesday's closing stock price of $92.49, C3.ai was valued at $8.9 billion, based on the number of outstanding shares. It was privately valued at $3.3 billion in 2019, according to PitchBook data. | | | | | | | | PubMatic stock soars on first day | | | Stock in PubMatic closed Wednesday trading at $29.20 per share, up roughly 46% during its first day on the Nasdaq. The Palo Alto-based company, the creator of a digital media platform for advertisers and publishers, offered 5.9 million shares for $20 each in its IPO, raising $118 million. PubMatic's backers include Nexus India Capital, Helion Venture Partners and August Capital. | | | | | | | | Robinhood eyes $20B valuation with IPO | | | Robinhood has chosen Goldman Sachs to prepare its upcoming IPO in 2021, which could value the company at $20 billion, according to Reuters. In September, the stock trading app provider was worth $11.7 billion after it secured an additional $460 million for its Series G from investors including Andreessen Horowitz and Sequoia. Robinhood has raised a total of $1.3 billion in 2020. | | | | | | | | Skincare company HydraFacial inks $1.1B SPAC pact | | | | | | | | | PE-backed hospital chain raises $2.2B in public debut | | | Brazilian hospital operator Rede D'Or reportedly raised 11.4 billion reais (about $2.2 billion) in a major IPO in Sao Paolo this week, with Reuters indicating the offering valued the company at 112.5 billion reais. The Carlyle Group and GIC have each owned minority stakes in Rede D'Or since 2015. | | | | | | | | | | Sensor specialists to combine in $1.7B deal | | | Amphenol, a provider of interconnect, antenna and sensor technologies, has agreed to pay $1.7 billion in cash for MTS Systems, which develops test systems, motion simulators and precision sensors. Connecticut-based Amphenol will pay $58.50 per share for MTS, a premium of nearly 52% to the Minnesota-based company's closing share price on Tuesday. | | | | | | | | | "Sponsor-backed M&A deal volume recovered impressively in Q3 2020. 518 transactions closed in the third quarter, equating to a 17.5% rise from Q2 2020. ... On the other hand, we did observe a near 15% fall in sponsor M&A deal value from Q2 2020, and a drop in the median sponsor bolt-on deal size, suggesting GPs are focusing more on smaller acquisitions, as opposed to larger platform deals."
Source: PitchBook's Q3 2020 European M&A Report | | | | | | | | | | | | | | | Who's in the newsletter today? | | People | | | | Investors | | | | Companies | | | | | | | | | | | | | | | |
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