Tag Archives: initial public offering

Box has reportedly, secretly, filed for an IPO

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Aaron Levie_Headshot
Summary:Cloud collaboration star Box has filed for an IPO, according to a report in Quartz. It would be a wise move for the company, which is riding mega goodwill — and mega challenges — as it scales its business and its infrastructure.

Cloud collaboration pioneer Box has filed paperwork for its initial public offering, according to a report on Quartz. The article cites an unnamed source who said Box filed its S-1 form in secret — as did Twitter over the summer — taking advantage of a provision in the JOBS Act for companies earning less than $1 billion in annual revenue.

While the exact timing might have come as a surprise, if the report is accurate, it was no secret that Box has been positioning itself for an IPO for some time.

The company has been growing like crazy, too, and racking up stacks of venture capital along the way. Box Founder and CEO Aaron Levie told us on a podcast appearance in September that the company grew revenue 150 percent in 2012 and expected it to increase another 100 percent in 2013. The company announced a $100 million round of venture capital financing in December (part of about $250 million it has raised since its 2005 launch) at a valuation of nearly $2 billion.

If recent IPOs by other companies with Box’s level of goodwill are any indication, going public could be very lucrative for Box. It might be necessary, too, as the company attempts to scale up its research and engineering efforts. As the company’s user bases and account sizes grow, it might need to invest significantly in better infrastructure and better data analysis to ensure the product keeps up.

Full Article Here – > http://gigaom.com/2014/01/30/box-has-reportedly-secretly-filed-for-an-ipo/

Zulily $253M IPO is a ‘watershed moment’ for e-commerce

Zulily $253M IPO is a ‘watershed moment’ for e-commerce

On Zulily, parents can buy stylish apparel and accessories for kids

E-commerce startup Zulily smashed analyst estimates with its initial public offering, with shares soaring 88 percent in its debut.

Zulily’s shares opened this morning at $39, above the IPO price of $22. The Seattle-based company raised $253 million at a valuation of $2.6 billion and has almost doubled to just over $5 billion.

“The team has exceeded expectations; it’s a watershed moment for e-commerce,” said Dave Spector, a former e-commerce investor at Sequoia Capital, and the cofounder of MeCommerce.

This is the first successful initial public offering from a company that sells products online to consumers in years. Fab has been struggling to meet its revenue targets, and Groupon is still trying to find its formula for growth.

Zulily has made ample revenues in the past few years, recently turning a small profit. A filing revealed that Zulily brought in $331 million in 2012, up from $143 million in 2011. It lost $10.3 million last year, but it had a $2.3 million profit in the first half of 2013.

One investor, who asked to remain anonymous, noted that Zulily just experienced the strongest exit since Zappos was acquired by Amazon.

Zulily has remained loyal to its core audience: children and parents. It offers discounts and flash sales on clothing, toys, infant gear, and home decor. Since launching in January 2010, Zulily has worked with over 10,000 brands, featured 1.6 million product styles, and sold over 42 million items to a total of 2.9 million customers.

“The company was passionate about selecting the right brand partners,” said Cheryl Yeoh, the founder of personalized shopping list app Reclipit, which Walmart Labs acquired. “Zulily stands out as its team of serial entrepreneurs knows what their audience wants,” she added.

Indeed, moms are a highly lucrative market. According to the U.S. Census Bureau, 39 million U.S. households have children under the age of 18.

Zulily is proving that there is still money to be made with the flash sales model, although the company may struggle in the long-term.

Small businesses realized that a one-off coupon or discount would not build customer loyalty and retention. They began to snub daily deals giants, like LivingSocial and Groupon. Zulily’s has succeeded with its target market, but the company will need to expand its suite of profits to continue to grow.

“This outcome proves that e-commerce is alive — many investors wrote off the space for many years,” said Spector, who believes we’ll see a surge in venture investment in the space. “This is very positive from a trend perspective.”


The Twitter NYSE Honeymoon Is Over As Stock Price Takes Another Nosedive

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Today at market opening, Twitter shares (NYSE:TWTR) dropped once again. Shares were at $60.27, down 5.46 percent compared to Friday’s closing price of $63.75. This nosedive marks the end of the honeymoon between Twitter and the NYSE as many analysts stated that shares are overpriced. Until now, the stock held strong amid those reports, but that seems to be coming to an end.

It is not the first drop as shares were already down 13 percent on Friday, shaving $5 billion off Twitter’s market capitalization. It was a big correction of Thursday’s good performance — on Thursday, shares popped 5 percent for no apparent reason.

Many analysts find that Twitter is an expensive company. With a market cap of $33.6 billion, the company has yet to turn a profit — analysts don’t expect to see any profit before 2015. But this pessimistic trend on the analyst’s side seems to be increasing. On Friday, Macquarie analyst Ben Schachter downgraded Twitter.

According to Bespoke Investment Group, the average price target stands at $44.27, around 37 percent below today’s trading price.

But why is the stock price dropping today? The Twitter IPO was a great sign for the entire tech industry. Private companies saw that the stock market could be friendly again with tech companies — and now, everyone wants to IPO.

When Twitter became a public company on November 7, the company priced its IPO at $26 a share. Shares popped 74 percent on that day. After this very good IPO performance, the stock price has been relatively flat.

Many commented that the IPO was underpriced on purpose to make a big splash on the NYSE. Leaving money on the table was a way to improve the longterm prospects and overall image. Shares are still up around 135 percent compared to the IPO price.

Yet, there was a recent turning point for Twitter shares. When the company introduced retargeted ads in early December, the advertising industry was very enthusiastic. Ads would soon be more relevant thanks to browser cookies and more user information. And shareholders voted with their wallets.

Shares went from $44.95 on December 6 to $73.31 on December 26. It represents a 63.1 percent increase, or a $15.7 billion increase in market capitalization. But it wasn’t sustainable on the long run. This 3-week honeymoon was great while it lasted, but it’s time to come back to reality.

Update at 9:45 am (ET): Shares are now down 7.22 percent to $59.15 a share.

Screen Shot 2013-12-30 at 15.44.16


Twitter shares touch new high, sail past $52

By Gerry Shih

SAN FRANCISCO Tue Dec 10, 2013 2:47pm EST

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The Twitter symbol is displayed at the post where the stock is traded on the floor of the New York Stock Exchange, November 15, 2013. REUTERS/Brendan McDermid

The Twitter symbol is displayed at the post where the stock is traded on the floor of the New York Stock Exchange, November 15, 2013.

Credit: Reuters/Brendan McDermid

(Reuters) – Investors piled into Twitter Inc for the second straight day, lifting its shares to more than $52 and setting a new intraday high on Tuesday even in the absence of any significant announcements from the social media debutante.

Read more – > http://www.reuters.com/article/2013/12/10/us-twitter-shares-idUSBRE9B810Y20131210


Everything You Need to Know About Twitter’s ‘Confidential’ IPO

So much confusion. So little time to dispel it



We’re on Twitter time now. The official announcement, sealed with a Tweet of course, said simply, “We’ve confidentially submitted an S-1 to the SEC for a planned IPO.”


Not following the “jobs and growth” movement? You may have missed a newfangled way start-ups can start the process of raising money from the public — and create jobs and economic growth—with less regulation and much less paperwork. On April 5 of last year, the Jumpstart Our Business Startups Act (JOBS Act or Act) became law in the U.S. Don’t let the rah-rah of the law’s title fool you. This law is all about making it much easier for private companies to access public capital with less muss, less fuss. The law also provides relief to certain companies, emerging growth company or EGCs, so they can go public on U.S. exchanges without providing as much information to investors as early in the process as they used to.


All this easy access to investors’ wallets means some “radicals” accused lawmakers of trying to pull a fast one. Eliot Spitzer was blunt:


Image representing Twitter as depicted in Crun...

Image via CrunchBase


“It shouldn’t be called the JOBS Act, it should be called the Bring Fraud Back to Wall Street Act.”


EY is the global public accounting firm of choice to emerging social networking/social gaming companies such as Groupon, Zynga, and Facebook as well as veteran technology and media companies such as Google, HP, News Corp, and Oracle.


Twitter’s auditor is probably EY, given EY’s market dominance in the Silicon Valley emerging growth tech environment and EY’s deep “experience” with Facebook, Groupon, and Zynga. Twitter did not reply to a request for auditor information, and CEO Dick Costolo did not reply to my open request via Twitter.



A recent EY survey says U.S. investors believe the main benefits of the JOBS Act are those “that affect the offering process (e.g., allowing immediate analyst coverage after an IPO, giving companies the ability to test the waters with certain investors) rather than those related to disclosure and compliance relief for emerging growth companies (e.g., deferral of auditor attestation on internal control, reduced financial reporting periods).”


Read more – > https://medium.com/by-the-numbers/97f1439086c8




Flurry Raises Another $12.5M For Mobile Analytics And Advertising

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Image via CrunchBase


Mobile analytics company Flurry has raised $12.5 million in new funding, as first revealed in a filing with the Securities and Exchange Commission and confirmed by a Flurry spokesperson.


The company started out as an app developer before shifting its focus to analytics and then using its data for advertising. It raised a $25 million round about a year ago, and at the time, CEO Simon Khalaf hinted at a possible IPO and said the company had become cash-flow positive.


Flurry told me today that 400,000 apps are using its analytics product, with 20,000 additions each month, and that it’s tracking activity from 1.2 billion smartphones and tablets. It also said that it’s working with 125,000 developers.


Source TechCrunchRed more – > http://techcrunch.com/2013/12/06/flurry-funding/



Why I love Twitter and barely tolerate Facebook

For the past decade, I’ve tried every new social media product to come along but I find myself returning to the two giants of the industry most often: Twitter and Facebook. I’m optimistic and delighted every time I open up Twitter on my browser, while Facebook is something I only click on once or twice a day and always with a small sense of dread. This week I sat down to think about why that is.


Image representing Twitter as depicted in Crun...

Image via CrunchBase


Twitter put simply is fun, fantastic, and all about the here and now. The fact that I can’t even search my own feed for past things I’ve said makes it exist almost entirely in the present tense. The people I follow are people I know, people I work with and live near, but also a good dose of random comedians, musicians, and celebrities I’ll never meet. The things everyone tweets about are mostly jokes or things that make you smile, either random things that popped into the writers’ heads or comments on current events.


There’s no memory at Twitter: everything is fleeting. Though that concept may seem daunting to some (archivists, I feel your pain), it also means the content in my feed is an endless stream of new information, either comments on what is happening right now or thoughts about the future. One of the reasons I loved the Internet when I first discovered it in the mid-1990s was that it was a clean slate, a place that welcomed all regardless of your past as you wrote your new life story; where you’d only be judged on your words and your art and your photos going forward.




read more -> https://medium.com/adventures-in-consumer-technology/52a20d7a17de



Twitter IPO sparks speculation on who could follow

Twitter CEO Dick Costolo is interviewed after the Twitter Inc. IPO on the floor of the New York Stock Exchange in New York


(Reuters) – For technology executives weighing display flotations for Silicon Valley startups, this week’s gangbusters Twitter Inc initial public offering sent a powerful signal: full speed ahead.

About a dozen private companies are valued at more than $1 billion, and many of them have already been holding relaxed talks with bankers. Now, many – including Box, Square and Airbnb – are likely to accelerate their IPO plans, according to venture capitalists.

File-sharing association Box picked Morgan Stanley, Credit Suisse and JP Morgan to lead its IPO, Reuters reported Friday. The company has been valued at more than $1.2 billion by private venture capital backers, but it remains unclear whether it is profitable.


Read more:  http://www.reuters.com/article/2013/11/09/us-usa-tech-ipos-idUSBRE9A806320131109

Twitter shares soar 92 percent in frenzied NYSE debut

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Image via CrunchBase


(Reuters) – Twitter Inc soared as much as 92 percent in its first day of trading on Thursday on the New York Stock Exchange as investors snapped up shares in the popular microblogging site in a frenzy that recalled the days of the dot-com bubble.


The shares opened at $45.10 a share, up from the initial public offering price of $26 set on Wednesday, then added to those gains, hitting a high of $50. They were up 73.7 percent to $45.15 at midday.




Read more:  http://www.reuters.com/article/2013/11/07/us-twitter-ipo-idUSBRE99N1AE20131107



Early Twitter investors double down on consumer Web start-ups

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(Reuters) – For Twitter Inc’s early venture capital backers, some of whom stand to make over 500 times their investment when the company goes public, now is a time not just to celebrate but increase their stakes in mobile and social media.

Take Bijan Sabet, the partner at Spark Capital who led his firm’s investment in Twitter in 2008. At the time, according to a person familiar with the matter, Twitter was valued at $100 million. This week, the company is seeking a valuation of up to $13.6 billion in its initial public offering.

“Most of what I’ve been doing,” Sabet said in a phone interview, “is being hyperfocused on consumer Web and mobile products.”


Read more: http://www.reuters.com/article/2013/11/05/us-twitter-ipo-earlyinvestors-idUSBRE9A40UO20131105