Wednesday, 28 August 2024

The rocky road to profitability post-IPO

Plus, corporate rounds on the upswing

August 28, 2024

Hi, Agen. Even the most valuable one-time venture-backed technology companies went public before turning profitable. But how long were investors willing to wait to see those investments’ bottom lines jump from red to black? We take a look at some of the very large cap stocks’ timelines to payoff. Plus, a higher percentage of U.S. startup investment is coming from corporate rounds, and data infrastructure unicorn Cribl’s latest funding resulted in a significant up-round for the company.

Startups have a limited post-IPO window to turn profitable

A plurality of the most valuable technology companies went public before turning a profit. But while investors might wait a few years for profitability, they won’t do so indefinitely.

🔼 Corporate funding rounds tick up

In the past couple years, a larger share of U.S. startup investment has come from corporate funding rounds, with 2024 currently in second place for the highest share of funding from such deals.

Related Crunchbase Pro list: US Corporate Rounds

👀 Data infrastructure startup Cribl jumps valuation to $3.5B

San Francisco-based Cribl raised a $319 million Series E led by new investor GV and valuing the data infrastructure company at $3.5 billion — a significant increase from its 2022 Series D.

📉 China’s venture funding is tumbling

Venture funding to Chinese startups seems almost certain to hit its lowest point in a decade as early-stage funding continues to plummet and growth rounds get smaller, according to Crunchbase. Not even AI is saving the day.

Recent Investments

National Park Foundation

$100M / Grant

National Park Foundation preserves wildlife, history, and culture, engaging youth and connecting people to parks.

Categories:

Association • Charity • Non Profit • Parks • Wildlife Conservation

Investors:

Lilly Endowment (Lead)

Shift

35M AUD / Series D

Shift offers credit and payment products to help businesses manage cash flow.

Categories:

B2B • Banking • Credit • FinTech • Payments

Founders:

Jamie Osborn

Investors:

Peak XV Partners (Lead)

ProhostAI

$1.5M / Pre Seed Round

ProhostAI develops an AI-powered system to automate vacation rental guest communications and operations.

Categories:

Artificial Intelligence (AI) • B2B • Generative AI • Machine Learning • SaaS

Founders:

Andrew Lawson, Bill Ulammandakh

Investors:

Data Tech Fund, Pear VC, Y Combinator

More Fundings

Company Amount / Round Lead Investor
LeapFrog Investments $30M / Private Equity Round International Finance Corporation
Convin $6.5M / Series A India Quotient
Finarkein Analytics $4.8M / Seed Round Nexus Venture Partners
PrivacyHawk $3.0M / Seed Round -
All Recent Funding Activity

Recent Acquisitions

Givex

Pending acquisition by Shift4 Payments for 200M CAD

More Acquisitions

Company Acquired By Amount
Convion HD Hydrogen 72M EUR
AQF Medical UFP Technologies $48M
All Recent Acquisition Activity

Upcoming Tech Events

BIO-Europe 2024

November 4 - 6, 2024 in Stockholm

BIO-Europe 2024 connect with delegates spanning the global life science ecosystem to propel dealmaking and innovation.

Accelerator Deadlines

Date Accelerator Location
Aug 27, 2024 Y Combinator Mountain View
Aug 31, 2024 Peachscore Los Angeles
More Upcoming Deadlines
Don’t see your event? Reach out to us at events@crunchbase.com.

Discover innovative companies and the people behind them.

Follow Us on Crunchbase View Jobs on LinkedIn Follow Us on Twitter Like Us on Facebook

564 Market St, San Francisco, CA 94104
© 2024 Crunchbase Inc. All rights reserved. Privacy Policy | Terms of Service

Unsubscribe from Crunchbase Daily.

No comments:

Post a Comment