As I’m sure everyone reading this knows, women-founded businesses receive a little over 2 percent of venture capital annually. Most of those checks are written in startup companies. It’s extremely difficult for founding women to get support in the later stages, let alone cash $ 100 million in checks.
Maybe that is finally changing. This week, not just one but two women-led and founded companies, Glossier and Rent The Runway, raised nine-figure rounds and solidified their status as unicorn companies. According to PitchBook data from 2018, there are only about 15 unicorn startups with female founders. Although I’m sure the number has risen in the last year, you get the point: there are hundreds of billion dollar private companies and surprisingly few of them have female founders (even fewer have female CEOs) …
YC demo days
I spent a good part of the week at Pier 48 in San Francisco in a room full of investors wearing vests. We heard from about 200 YC companies who did their 120 second release and while it was a bit of a whirlwind, there were definitely some standouts. ICYMI – We wrote about each and every company that launched on day 1 and day 2. If you are looking for detailed information on companies that dropped out on demo day and raised rounds, or were acquired, before going on stage, we have also have that.
Lyft: This week, Lyft set the terms of its highly anticipated initial public offering, which is expected to be completed next week. The company will charge between $ 62 and $ 68 per share, raising more than $ 2 billion at a valuation of ~ $ 23 billion. We previously reported that its initial market cap would be around $ 18.5 billion, but that was before we knew that Lyft’s IPO was already oversubscribed Here’s a little more info on Lyft’s IPO for those interested.
Uber: This week, the global passenger transport business flew a bit more under the radar than it did last week, but still managed to grab some headlines. The company decided to sell its shares on the New York Stock Exchange, which is the least surprising IPO development of 2019, considering its key US competitor Lyft has been working with Nasdaq on its IPO. Uber is expected to launch its S-1 in April.
Pinterest: Pinterest, The nearly decade-old visual search engine unveiled its S-1 on Friday, one of the final steps ahead of its NYSE IPO, expected in April. The $ 12.3 billion company, which will trade under the symbol “PINS,” posted revenue of $ 755.9 million in the year ended December 31, 2018, down from $ 472.8 million in 2017. It has roughly doubled its monthly account of active users since the beginning of 2016. Hitting 265 million last year. The company’s net loss, meanwhile, dropped to $ 62.9 million in 2018 from $ 130 million in 2017.
FocusNot necessarily the liveliest company, but your S-1 file, released on Friday, stands out for one important reason: Zoom is profitable! I know, how crazy! Regardless, the startup will go public on Nasdaq next month, after raising around $ 150 million in venture capital funding. The full funds are here.
General Catalyst, A well-known venture capital firm, is getting more seriously into the business of financing early-stage businesses. The firm, which has investments in Warby Parker, Oscar and Stripe announced earlier this week their plan to invest at least $ 25 million each year in nascent teams.
Deal of the week
Earlier this week, Opendoor, the SoftBank -Real estate start-up, filed documents to raise even more money. According to TechCrunch’s Ingrid Lunden, the business plans to raise up to $ 200 million with a valuation of approximately $ 3.7 billion. This may be an extension of the E Series; after all, the company raised its $ 400 million Series E just six months ago. OpenDoor supporters include the usual suspects: Andreessen Horowitz, Coatue, General Atlantic, GV, Initialized Capital, Khosla Ventures, NEA, and Norwest Venture Partners.
Dan Primack of Axios and Kia Kokalitcheva released a report this week revealing that Backstage Capital had not raised its debut fund in total. Backstage founder Arlan Hamilton was quick to point out that she had been honest about the fundraising challenges during various conference engagements, and even on Gimlet’s “Startup” podcast, which featured her in its final season. A debate on Twitter ensued and, later, Hamilton announced that he was resigning as CEO of Backstage Studio, the hedge fund’s trading arm, to focus on raising capital and expanding founders. TechCrunch’s Megan Rose Dickey has the full story.
Pro rata rights
This week, Connie Loizos from TechCrunch He reviewed a lengthy debate: apportionment rights or the right of a former investor in a company to keep the percentage that he or she (or their venture company) owns as the company matures and acquires more funds. Here’s why apportionment rights are important (at least, for VC).
If you enjoy this newsletter, be sure to check out TechCrunch’s entrepreneurial podcast, Equity. In this week’s episode, available here, Crunchbase News Editor-in-Chief Alex Wilhelm and I chatted about Glossier, Rent The Runway, and YC Demo Days. Then in a special Equity Shot we unpacked the numbers behind the Pinterest and Zoom IPO files.
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