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Chinese electric vehicle maker Nio makes bumpy start following $1B IPO

Nio, the Tesla -wannabe electric vehicle firm from China, enjoyed a mix start to life as a public company after it raised $1 billion through a listing on the New York Stock Exchange on Wednesday. The firm went public at $6.26 — just one cent above the bottom of its pricing range — meaning that it raised a little over $1 billion. That’s some way down on its original goal of $1.8 billion, per an initial filing in August , and for a while it looked like even that price was optimistic. Early trading saw Nio’s stock fall as low as $5.84 before a wave of optimism took it to $6.81. The stock closed its first day at $6.60, up 12 percent overall, to give Nio a total market cap of $7.1 billion. Nio sells in China only, although its tech and design teams are based in the U.S, UK and Germany. Its main model, the ES8, is designed for the masses and is priced at 448,000 RMB, or around $65,000. That makes it cheaper than Tesla vehicles in China but it has only just got to making money. Nio has accrued some 17,000 orders for the vehicle, but it only began shipping in June. As a result, it has posted some pretty heavy losses in recent times — including minus $759 million in 2017. Ultimately, the firm raised $1 billion but its leadership may be disappointed that the final sum is well short of its original target. Reasons behind lukewarm investor interest may include: General concerns around the performance of Chinese firms, bellwether Tencent just had a rare profit drop , for example A crackdown on 30 other EV firms from the Chinese government, which followed a number of incidents including the reported explosion of a vehicle from WM Motor A knock-on effect from poor results from Tesla, which remains Nio’s main rival and carded wider-than-expected losses last month While there is also the ongoing spectacle that is the Trump administration’s ongoing trade war with China, which resulted in a range of new tariffs being issued last week Meanwhile, Nio is far from the newest kid on the block.

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Eventbrite files for $200 million IPO

Eventbrite filed an IPO today for $200 million, confirming reports earlier this summer that the event-planning company plans to go public later this year. According to the document , the company plans to raise $200 million from selling Class A shares, but has yet to list the price per share. As for what Eventbrite intends to do with the new funds, many are pointing to the need to recover the company’s recent losses. While the company reported a net profit of $201.6 million in 2017, operating and loss expenses still left the company unprofitable that year. The company reported a net loss of $38.5 million in 2017 and a loss so far in 2018 of $15.6 million. However, the company does report a net revenue growth of 51 percent and reported a net revenue of $142 million so far in 2018. The filing lists Goldman Sachs as a lead underwriter and bolsters the company’s commitment to providing a platform to “creators of all types” as a competitive advantage. To continue this commitment, the company says it intends to add extended capabilities across categories and countries. While the company has been in the event space for a while, even older companies like Ticketmaster, StubHub and Live Nation continue to give the company a run for its money — and its customers. For perspective, in 2017,  Live Nation reported a record $10.4 billion in revenue. Social platforms like Facebook have also recently complicated this space by integrating ticket purchasing portals  onto its site to direct customers to both Ticketmaster or Eventbrite. While driving one-time purchases to the services, these on-site portals keep users sequestered on Facebook and in turn don’t allow them to browse other options offered by the ticketing sites

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Uber finally hires a CFO as it heads for an IPO

Uber’s search for a chief financial officer—and the person who will steer the company towards an IPO—is over. The ride-hailing company said Tuesday it’s new CFO is Nelson J. Chai, the former CEO of insurance and warranty provider Warranty Group. Chai has the kind of experience Uber will need to navigate a successful IPO. Last year, Uber CEO Dara Khosrowshahi said an IPO for Uber was part of his plans. He targeted 2019 for the IPO. The road to an IPO will require some financial belt tightening, a role Chai would handle as CFO. Uber reported August 15 a net revenue of $2.7 billion in the second quarter, a 8 percent increase compared to previous quarter and 51 percent higher than the same quarter last year. Uber recorded gross bookings, which is the total taken for all of Uber’s transportation services, of $12 billion, a 6 percent quarter-over-quarter increase and a 41 percent year-over-year increase. However, Uber also saw its losses grow to $404 million in the second quarter compared to a $304 million shortfall in first quarter.

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Public shareholders got high today on Tilray, the first marijuana company to IPO on Nasdaq

Tilray , a five-year-old, British Columbia-based medical cannabis company that sells its products to patients, researchers, pharmacies and even governments, saw its shares get high (sorry) on the Nasdaq today, after the company priced 9 million shares at $17 apiece and watched them soar, closing at $22.39, a jump of slightly more than 32 percent. The company raised $153 million in the offering, capital it will reportedly use in part to fuel its marijuana growing and processing facilities in Ontario. It was a huge win for the cannabis industry, which has been growing like a weed (sorry again). Related startups attracted $593 million in funding last year, twice what they raised in 2016 and a meaningful jump from the $121 million invested in related startups in 2014, according to CB Insights. Among the different types of companies to garner investor dollars, shows  CB Insights’ research , are: startups focused on research or distribution of medical marijuana products (as with Tilray); tools for ensuring compliance with state and federal marijuana laws; startups focused on payments for marijuana companies; startups collecting data and producing marketing insights about the industry; and companies creating novel strains and types of marijuana using new farming techniques. Tilray’s performance today is also a very positive signal for Seattle-based Privateer Holdings , a private equity firm that owned 100 percent of the startup as it headed into its offering. In fact, Privateer’s CEO, Brendan Kennedy, is also the CEO of Tilray. (Cannabis companies are weird.) Privateer has itself raised more than $200 million since its founding in 2010, including from Founders Fund and Subversive Capital, and it has used that money to finance, acquire and incubate companies. While it incubated Tilray, for example, it also owns  Leafly , a large cannabis information resource that it acquired in 2011 . Another of its portfolio companies is  Marley Natural , a Bob Marley-branded cannabis line that it launched in partnership with the Marley’s estate and that sells a line of cannabis strains, smoking accessories and even body care products. It isn’t exactly clear how much Privateer had sunk into Tilray (we have a press request into the company). Tilray announced  C$60 million in Series A funding back in February, money it said had come from a “group of leading global institutional investors.” But according to its S-1, it was solely owned until today by Privateer.

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Airbnb could plan to IPO by late 2020

According to a report from The Information , Airbnb co-founder and CEO Brian Chesky told its employees that the company is aiming to go public by late 2020. Airbnb’s IPO has been a source of frustration for employees as many of them need to stay at the company to vest and sell their stock grants. An IPO would mean much more liquidity when it comes to buying and selling Airbnb shares. In addition to the new timeframe, Airbnb is also offering more bonus options. Employees can now choose to get bonuses in cash instead of stock. This could improve employee retention as many employees probably don’t need more Airbnb stock if they’ve been around since the early days of the company. Last year, Airbnb closed a $1 billion round at a $31 billion valuation. The stakes are now quite high for the IPO given the last valuation.

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Xiaomi posts $1.1B quarterly loss ahead of much-anticipated IPO

A month after it filed for a much-anticipated Hong Kong IPO , Xiaomi has revealed a little more financial information after a monster 621-page document disclosed a $1.1 billion (seven billion RMB) loss for the first quarter of the year. The IPO, which could raise up to $10 billion value Xiaomi at high as $100 billion, is set to be the largest IPO raise since Alibaba went public in the U.S. in 2014 . That prospect got a boost with a dose of positive financial growth despite a loss incurred by one-off payments. The document, which was filed was an application to issue a CDRs as part of a dual-listing that would include Mainland China, showed that Xiaomi’s revenue for the quarter jumped to 34 billion RMB, or $5.3 billion. That’s compared to 114.6 billion RMB ($17.9 billion) in total sales for all of last year, according to digging from TechCrunch partner site Technode . While Xiaomi posted a loss for the quarter, the firm actually posted a 1.038 billion RMB ($162 million) profit for the period when one-time items are excluded. Xiaomi previously registered a 43.9 billion RMB ($6.9 billion) loss in 2017 on account of issuing preferred shares to investors (54 billion RMB) but it did post a slim profit in 2016. Xiaomi officially files for Hong Kong IPO to raise a reported $10 billion The company is ranked fourth based on global smartphone shipments, according to analyst firm IDC, and it is one of the few OEMs to buck slowing sales in China . China is, as you’d expect, the primary revenue market but Xiaomi is increasingly less dependent on its homeland. For 2017 sales, China represented 72 percent, but it had been 94 percent and 87 percent, respectively, in 2015 and 2016. India is Xiaomi’s most successful overseas venture, having built the business to the number one smartphone firm based on market share, and Xiaomi is pledging to double down on other global areas. Interestingly there’s no mention of expanding phone sales to the U.S., but Xiaomi has pledged to put 30 percent of its IPO towards growing its presence in Southeast Asia, Europe, Russia “other regions.” Currently, it said it sells products in 74 countries, that does include the U.S. where Xiaomi sells accessories and non-phone items

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Pluralsight prices its IPO at $15 per share, raising over $300M

Pluralsight priced the shares in its IPO at $15 this afternoon, above its previously set target range of between $12 and $14, and will raise as much as $357 million ahead of its public debut tomorrow morning. Pluralsight offers software development courses, specifically ones targeting employees that are looking to advance in their careers by acquiring new skills in order to transition to higher-level roles. As knowledge workers become increasingly valuable, especially in larger enterprises with sprawling workforces, companies like Pluralsight have found a sweet spot in building tools that enable companies to help identify talent in their own workforce and train them, rather than have to aggressively search outside the company to satisfy their needs. The company has raised $310.5 million in its IPO, with underwriters having the option to purchase an additional 3.1 million shares and bring that up to $357 million. The company is one of a continuing wave of enterprise IPOs this year, including multiple successful ones like zScalar and Dropbox — the latter of which was more of a flagship as both a hotly-anticipated one and as a company that possesses a unique business model. But nonetheless, it’s shown that there’s an appetite for enterprise startups looking to go public, which offers those companies a way to raise capital in addition to offering their employees liquidity. Pluralsight will be another of an increasing pack of unicorns in the Utah tech scene that are on their way to going public. Founded in 2004, Pluralsight was largely bootstrapped until its first financing round in 2013 where it raised $27.5 million from Insight Venture Partners . That firm is the company’s largest shareholder, and since then Pluralsight has raised nearly $200 million in financing. Its The company’s IPO tomorrow will once again test the appetite for fresh IPOs among public investors. Enterprise companies generally offer a more stable batch for venture portfolios, with predictable and reliable growth that eventually carries it to an IPO with varying levels of success

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DocuSign pops 30% and Smartsheet 23% in their debuts on Nasdaq and NYSE

Enterprise tech IPOs continue to roar in 2018. Today, not one but two enterprise tech companies, DocuSign and Smartsheet, saw their share prices pop as they made their debuts on to the public markets. As of 1:33 New York time, DocuSign is trading higher at $39.77, up 37 percent from its IPO price and giving the company a market cap of $6 billion. Smartsheet is at $18.57, giving it a market cap of $1.8 billion. We’ll continue to update these numbers during the day. Smartsheet was first out of the gates. Trading on NYSE under the ticker SMAR, the company clocked an opening price of $18.40 . This represented a pop of 22.7 percent on its IPO pricing of $15 yesterday evening — itself a higher figure than the expected range of $12-$14. The company, whose primary product is a workplace collaboration and project management platform (it competes with the likes of Basecamp, Wrike and Asana), raised $150 million in its IPO and is currently trading around $18.30/share. Later in the day, DocuSign — a company that facilitates e-signatures and other features to speed up contractural negotiations online, competing against the likes of AdobeSign and HelloSign — also started to trade, and it saw an even bigger pop.

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