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Readying an IPO, Postmates secures $225M led by private equity firm GPI Capital

Postmates, the popular food delivery service, has raised another $225 million at a valuation of $2.4 billion, the company confirmed to TechCrunch on Thursday, ahead of an imminent initial public offering.

Private equity firm GPI Capital has led the investment, first reported by Forbes, which brings Postmates’ total funding to nearly $1 billion. GPI takes non-controlling stakes — between 2% and 20% — in both late-stage private companies and publicly listed ventures.

After tapping JPMorgan Chase and Bank of America to lead its float, Postmates filed privately with the Securities and Exchange Commission for an IPO earlier this year. Sources familiar with the company’s exit plans say the business intends to publicly unveil its IPO prospectus this month.

To discuss the company’s journey to the public markets and the challenges ahead in the increasingly crowded food delivery space, Postmates co-founder and chief executive officer Bastian Lehmann will join us onstage at TechCrunch Disrupt on Friday October 4th.

As Forbes noted, last-minute financings are critical for companies poised to run out of cash and in need of an infusion prior to hitting the public markets. The motives for Postmates’ last-minute financing are unclear; however, the company will certainly begin trading on the stock market at an interesting time. 2019 has proven to be the year of unicorn listings, and former Silicon Valley darlings like Uber and Lyft have struggled to stabilize since their multi-billion-dollar debuts, despite years of support and coddling from venture capitalists.

Meanwhile, activity in the food delivery space has distracted from Postmates’ prospects. DoorDash, for one, recently purchased another food delivery service, Caviar, from Square in a deal worth $410 million. Uber is said to have considered buying Caviar, which had been looking for a buyer at least since 2016, according to Bloomberg. Postmates, for its part, has long been the subject of M&A rumors.

On-demand food delivery, undeniably popular, has yet to prove its long-term viability as a money-making business. At the very least, a sizeable check from a private equity firm ensures Postmates has the capital it needs, for the time being, to accelerate growth and double down on its autonomous robotic delivery ambitions.

Founded in 2011, Postmates is also backed by Spark Capital, Founders Fund, Uncork Capital, Slow Ventures, Tiger Global, Blackrock and others.

Readying an IPO, Postmates secures $225M from private equity firm GPI Capital

Postmates, the popular food delivery service, has raised another $225 million at a valuation of $2.4 billion ahead of an imminent initial public offering, the company confirmed to TechCrunch on Thursday.

Private equity firm GPI Capital has led the investment, first reported by Forbes, which brings Postmates total funding to nearly $1 billion. GPI takes non-controlling stakes — between 2% and 20% — in both late-stage private companies and publicly-listed ventures.

After tapping JPMorgan Chase and Bank of America to lead its float, Postmates filed privately with the Securities and Exchange Commission for an IPO earlier this year. Sources familiar with the company’s exit plans say the business intends to publicly unveil its IPO prospectus this month.

To discuss the company’s journey to the public markets and the challenges ahead in the increasingly crowded food delivery space, Postmates co-founder and chief executive officer Bastian Lehmann will join us on stage at TechCrunch Disrupt on Friday October 4th.

As Forbes noted, last-minute financings are critical for companies poised to run out of cash and in need of an infusion prior to hitting the public markets. The motives for Postmates last-minute financing are unclear, however, the company will certainly begin trading on the stock market at an interesting time. 2019 has proven to be the year of unicorn listings and former Silicon Valley darlings like Uber and Lyft have struggled to stabilize since their multi-billion-dollar debuts, despite years of support and coddling from venture capitalists.

Meanwhile, activity in the food delivery space has distracted from Postmates prospects. DoorDash, for one, recently purchased another food delivery service, Caviar, from Square in a deal worth $410 million. Uber is said to have considered buying Caviar, which had been looking for a buyer at least since 2016, according to Bloomberg. Postmates, for its part, has long been the subject of M&A rumors.

On-demand food delivery, undeniably popular, has yet to prove its long-term viability as a money-making business. At the very least, a sizeable check from a private equity firm ensures Postmates has the capital it needs, for the time being, to accelerate growth and double down on its autonomous robotic delivery ambitions.

Founded in 2011, Postmates is also backed by Spark Capital, Founders Fund, Uncork Capital, Slow Ventures, Tiger Global, Blackrock and others.

Startups Weekly: VCs are drunk on beverage startups

Hello and welcome back to Startups Weekly, a newsletter published every Saturday that dives into the week’s most noteworthy venture deals, fundraises, M&A transactions and trends. Let’s take a quick moment to catch up. Last week, I wrote about an alternative to venture capital called revenue-based financing and before that, I jotted down some notes on one of VCs’ favorite spaces: cannabis tech. Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets.

This week, I want to share some thoughts — questions, rather — on beverages. Just as my inbox has been full of cannabis-related pitches, it’s also been packed with descriptions of new…drinks. Perhaps the most noted so far is Liquid Death, canned water for the punk rock crowd, because why not? Liquid Death has attracted nearly $2 million in funding from angel investors like Away co-founder Jen Rubio and Twitter co-founder Biz Stone. Before I tell you about a few other up-and-coming beverage makers, I must beg the question: Does the beverage industry need disrupting?

Founders say yes. Why? For one, because millennials, according to various studies, are consuming less alcohol than previous generations and are therefore seeking non-alcoholic beverage alternatives. Enter Seedlip, a non-alcoholic spirits company, for example. Or Haus, launching this summer, an all-natural apéritif distilled from grapes that has a lower alcohol content than most hard liquors. Haus, like any good consumer startup in 2019, is shipped directly to your door.

Bev, a canned wine business that recently raised $7 million in seed funding from Founders Fund, thinks marketing in the alcohol industry is the problem. Founder Alix Peabody designed a line of female-focused canned rosé. If you’re wondering why alcohol needs to be gendered in such a way, you’re not alone. Peabody explained most alcohol brands cater to men, and that’s a problem.

“The joke I like to make is there’s a go-to type of alcohol for every type of bro and we just don’t have that for women,” Peabody told TechCrunch earlier this year.

Finally, the wellness movement is taking over, driving VCs toward some odd upstarts. From wellness chat and journaling apps to therapy substitutes to fitness companies, stick wellness in a pitch and investors will take a second look. More Labs, for example, is backed with $8 million in VC funding. The company is readying the launch of Liquid Focus, a biohacking-beverage that claims to “solve modern-day stressors without the negative side effects.” Finally, Elements, “an elevated functional wellness beverage formulated with clinical levels of adaptogens to give your body exactly what it needs in four categories (focus, vitality, calm, and rest) for specific cognitive functions” (damn, what copy), recently launched. It doesn’t appear to be funded yet, but let’s just give it a few months.

There’s more where that came from, but I’m done for now. On to other news.

IPO Corner

I almost skipped IPO corner this week because no big-name companies dropped or amended their S-1s or completed a highly anticipated IPO, as has been the case basically every week of 2019. But I decided I better give a quick update on Luckin Coffee’s tough second week on the stock market. Luckin Coffee, if you aren’t familiar, is Starbucks’ Chinese rival. The company raised more than $550 million after pricing at $17 per share a little over a week ago. Immediately the stock skyrocketed 20 percent to a roughly $5 billion market cap; then came concerns of the company’s lofty valuation, major cash burn and uncertain path to profitability.  Luckin has dropped around 25 percent since closing its debut trading day. It closed Friday down 3 percent.

More changes at Y Combinator

Y Combinator, the popular accelerator program and investment firm announced this week that it has promoted longtime partner Geoff Ralston to president. This comes two months after former president Sam Altman stepped down to focus his efforts full-time on OpenAI. The promotion of Ralston is an unsurprising choice for YC, an organization that employs roughly 60 people, many of whom have been affiliated with it in one way or another for years.

M&A

Automattic acquires subscription payment company Prospress

Shopify quietly acquires Handshake, an e-commerce platform for B2B wholesale purchasing 

Streem buys Selerio in an effort to boost its AR conferencing tech

As Amex scoops up Resy, a look at its acquisition history 

Fundraising

The Los Angeles ecosystem is $76 million stronger this week as Fika Ventures, a seed-stage venture capital firm, announced its sophomore investment fund. Fika invests roughly half of its capital exclusively in startups headquartered in LA, with a particular fondness for B2B, enterprise and fintech companies. The firm was launched in 2017 by general partners Eva Ho and TX Zhuo, formerly of Susa Ventures and Karlin Ventures, respectively. The pair raised $41 million for the debut effort, opting to nearly double that number the second time around as a means to participate in more follow-on fundings.

Startup capital

DoorDash raises $600M at a $12.7B valuation
TransferWise completes $292M secondary round at a $3.5B valuation
Auth0 raises $103M, pushes its valuation over $1B
Canva gets $70M at a $2.5B valuation
Payment card startup Marqeta confirms $260M round at close to $2B valuation
Modsy scores $37M to virtually design your home
Sun Basket whips up $30M Series E
Zero raises $20M from NEA for a credit card that works like debit
Nigeria’s Gokada raises $5.3M for its motorcycle ride-hail biz

Extra Crunch

Our premium subscription service had another great week of interesting deep dives. This week, TechCrunch’s Lucas Matney went deep on Getaround’s acquisition of Drivy for his latest installment of The Exit, a new series at TechCrunch where we chat with VCs who were in the right place at the right time and made the right call on an investment that paid off. Here are some of the other Extra Crunch pieces that stood out this week:

Equity

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I discuss how startups are avoiding IPOs and VC’s insatiable interest in food delivery startups.

A16Z and Founders Fund sink $28M into IRL asset blockchain Harbor

Harbor helps businesses legally issue cryptocurrency tokens that represent ownership of real-world assets like real estate, fine art, company equity, and investment funds. This “tokenization” might sound boring, but it could be a big business that unlocks trading of illiquid property.

Harbor‘s intention to become a fundamental bridge between the offline and crypto economies has attracted a $28 million strategic round led by Founders Fund and joined by Andreessen Horowitz, Pantera Capital, and more. Following its $10 million Series A in February, Harbor has now raised over $40 million to dissolve the legal barriers to private securities tokenization.

“We think there’s going be a far greater appetite for owning real-world assets using the blockchain” than digital only cryptocurrencies, Harbor CEO Joshua Stein tells me. He expects it be like the impact “email had on snail mail”, but with value instead of content being sent back and forth. Once someone like Harbor handles the technical necessities to make transfers instant, free, and secure, people will exchange a lot more frequently.

The Harbor team

Here’s how Harbor works. Clients pay it in cash to make their tokenization of an IRL private security legal. Traditional trading of these assets can be complicated and expensive given there are often financial regulations or licensing requirements restricting who can buy and sell them. For example, foreigners or unaccredited investors without enough net worth aren’t allowed to own certain securities. The lawyers to handle these sales can be expensive, and the process can take weeks.

Normally, businesses have to be very careful about who they let buy these securities because they’re liable for a 20-year criminal sentence if they violate SEC law. With Harbor, a white list of eligible owners is established by an outside law firm that takes responsibility, and Harbor’s smart contracts refuse to process an illegal sale. Harbor effectively bakes securities law compliance like know-your-customer and anti-fraud/money-laundering into the tokens themselves so trades can happen instantaneously without legal assistance on every sale.

Harbor is hoping to launch this Regulated Token (R-Token) system with its first client this summer. The tokens are ERC-20 compatible so they can be sold on lots of cryptocurrency exchanges and stored in popular wallets. Stein stresses that investors will have to trust the underlying securities they’re buying. But they’ll get more trust in who owns something through blockchain transparency rather than some signed contract locked in a desk or vault somewhere. And they won’t have to trust who they’re selling to since the smart contracts only execute the trade if its legal.

The idea of making the way hugely valuable assets trade faster, easier, and cheaper led Harbor’s latest round to be oversubscribed. That’s even though it only came out of stealth two months ago from Craft Ventures, the fund and incubator run by PayPal mafioso David Sacks who sold Yammer to Microsoft.

Craft Ventures, Vy Capital and Valor Equity Partners joined this that included other new investors like Future Perfect Ventures, 1confirmation, Abstract Ventures, and Signia Venture Partners. Nicolas Berggruen of Berggruen Holdings, Napoleon Ta of Founders Fund, and Kyle Samani and Tushar Jain of Multicoin Capital also put in their personal money.  Sacks knew Ta, which set up Founders Fund to lead the round. Meanwhile, Stein says Harbor wanted to team up with Andreessen Horowitz partner and crypto thought leader Chris Dixon.

Harbor will have to compete with the other blockchain-for-securities startups like Polymath, which runs decentralized and trustless infrastrucutre to the point that a source tells me you have to hope strangers want their deposit back enough not to screw you on legal compliance, and tZERO, which is building its own full-stack compliance system. Harbor’s reliance on outside legal firms to build the smart contract white lists makes it more akin to a traditional financial player.

Harbor could make a lucrative business out of letting clients sell American securities to the Chinese market, which has shown a strong interest in crypto assets. Stein talks about “a crypto nirvana of a trustless environment” like a true Bitcoin bro. But his new A-list investors show Harbor is no pump-and-dump.

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