Fees charged by investment banks to secure IPOs can eat up several points of a state-owned company’s gross revenue, but new competition gives some firms a chance to keep more of that early-stage money.
This week, Nubank paid just 1.6% of the $ 2.6 billion it raised from its underwriters. As Bloomberg reported, “of the 490 IPOs in the United States so far this year, only three have paid a lower percentage.”
In this morning’s edition of The Exchange, Anna Heim and Alex Wilhelm compared Nubank’s savings to DoorDash, which didn’t put aside any shares for the underwriters in its November 2020 IPO.
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They discovered several contributing factors, including increased global competition, the desire to attract more retail investors and, yes, SPACs.
This is undoubtedly “good news for startups,” as exchanges in different time zones offer more places for startups to list (or double) their stocks, write Alex and Anna.
“Could this also be a sign of some of the changes we plan to see in 2022? “
I will be on leave on Tuesday December 21, but we will come back with a very complete newsletter on Friday December 24. Thank you very much for your reading and have a good week.
Editor-in-Chief, TechCrunch +
Dear Sophie: How to manipulate the latest travel bans, H-1B alternatives
The 2021 H-1B lottery process has been a roller coaster ride!
We have sponsored several people in this year’s lottery. One of our registrants was selected in the first round in March, but none were selected in the second round in July.
We have just learned that another of our registrants was selected in November; However, he is from South Africa and cannot travel to the United States due to the omicron.
What should we do? Do you have any suggestions on what to do about our other potential recruits who weren’t screened?
– Enthusiastic employer
Some questions about the Reddit IPO
Founded 16 years ago, Reddit has raised $ 1.3 billion, taking the company to a valuation of $ 10 billion. This week, the user-generated community revealed that it had filed a confidential dossier to be made public.
“You know what that means,” wrote Alex Wilhelm. “It’s time to ask questions.
As he waits for his S-1 with a sharp scalpel, Alex shared some initial questions about the social hub’s operations, in particular:
“We’re curious about the costs of content moderation, product expansion, the makeup of the company’s revenue, how often governments get involved in the repository, and what the unicorn has to say about crypto. “
How to build a better rocket business [Video]
In “New Kids on the Launch Block,” a panel at TC Sessions: Space 2021, Darrell Etherington spoke to three rocket makers to learn more about the factors that make commercial space launches cheaper and more competitive:
- Lauren Lyons, COO, Firefly Aerospace
- Benjamin Lyon, Chief Engineer and Executive Vice President of Engineering, Astra
- Max Haot, Founder and CEO, Launcher
“A common theme that quickly emerged is that vertical integration is a key success factor in the rocket industry and lowers costs, especially with smaller capacity launchers,” writes Darrell.
It’s time for investors to redefine the way we evaluate digital health startups
A report from RockHealth.org found that 2021 was the best fundraising year yet for digital health startups.
Fueled in large part by an explosion in demand for mental health services and the expansion of telehealth during the pandemic, more and more investors are seeking founders who can honorably cut costs and create efficiencies in the world. a notoriously dilapidated industry.
Either way, “proving a case of a financially justified ROI takes a combination of time and data, and digital health is no exception,” writes Alyssa Jaffee, partner at the focused venture capital firm. 7wireVentures digital health.
Bold visions and strong fundamentals fuel investor interest in the space [Video]
The space industry is seeing unprecedented levels of private investment – and exits – as several companies scale up their operations.
In a TC Sessions: Space 2021 panel titled “Backing the Brightest,” Darrell Etherington reviewed activity over the past year and looked to 2022 with three investors:
- Tess Hatch, Partner, Bessemer Venture Partners
- Shaun Maguire, Partner, Sequoia
- Lisa Rich, Managing Partner, Hemisphere Ventures
John de Souza d’Ample on the merits of B2B, corporate culture and the investors who understand it
Starting a startup is inherently risky, but scaling a business to succeed where others have dramatically failed is a very bold move.
Ample, based in San Francisco, is partnering with companies that run fleets of electric vehicles to swap their modular batteries in and out of their vehicles.
“Fourteen years ago, Better Place raised almost a billion dollars to do what Ample does, and ended up declaring bankruptcy,” Rebecca Bellan reports.
In a lengthy interview with co-founder John de Souza, she asked about the company’s go-to-market strategy, its culture, and why it is certain that Ample will succeed where others have not.
“The economy and operations work great because you don’t need a lot of people in one station to break even. With a small fleet you would have a maximum of 20 cars and it will be profitable. This is what makes it so attractive. You don’t need to deploy the stations until you have a client.