But with the venture capital market red-lining its engines while public markets remain sympathetic to growing, unprofitable companies, lots is going on. So, as a follow-up to our first late-stage roundup that we published yesterday morning, here’s another.
This time we’re discussing IPO news from DigitalOcean (context), Kaltura (context), Robinhood (context), and Zymergen, and big rounds for Lattice and goPuff. That’s a lot to chew on, but I’ll be brief and to the point. We’ll commence with the IPO news and then pivot into the late-stage rounds, just in case more drops this morning while we’re typing our way through yesterday’s news. Let’s go!
Today’s most pressing news is that DigitalOcean, a cloud services provider to small businesses, priced its IPO at $47 per share last night. That was right at the top of its public-offering price range of $44 to $47. Before counting shares reserved for its underwriters, DigitalOcean is worth just under $5 billion.
And the company raised a gross of $775.5 million in the offering, giving DigitalOcean a massive war chest to pursue its vision. As the company has proved increasingly unprofitable on a GAAP basis in recent years, the extra cash isn’t a problem: DigitalOcean plans to reduce its aggregate debt load with some of the proceeds, which will improve its profitability.
The company won’t trade for hours, so we’re done with DigitalOcean for now. File it in your mind as a win, as the company raised $50 million last year at a $1.1 billion valuation (PitchBook data). That’s a quick 5x.
Next up from the IPO treadmill is Kaltura, which released the first guess of its market value as a public company. Targeting $14 to $16 per share in its impending debut, the video software company is worth around $2 billion at the top end of its range, not counting shares reserved for its underwriting banks or other claims tied up in vested options and recruited stock units (PSUs).