"Well, big money just offered a tiny little micro
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Posted On: 01/15/2022 12:42:02 PM
"Well, big money just offered a tiny little micro cap technology company more than 50% of it's current market cap"
That is an interesting perspective and something you pretty much rarely see. Usually funding comes in at 5%, 10% of valuation. Which I share some examples below.
I want to mention,
1.) 3i could have just went out and bought $3M shares on the open market. Might take awhile if they didn't want to run up the sp. But they didn't. And they certainly couldn't buy $50M worth in the open market without paying big bucks
2.) Verb isn't selling shares at a discount that will be flipped right over into the market. I would assume 3i would hang onto the shares or it would be a complete waste of time. The sp will be unaffected if/when Verb uses this.
3.)This debt financing and supplemental equity LOC facility had to happen first in order for Verb to make one or more acquisitions, the first of which would be at the end of Q1. Be nice to get that revenue on the Q2 books. Not only does this give them some cash to do the deal if it's not all stock, but the debt financing and LOC puts Verb in a stronger negotiating position for future acquisitions
4.) This sets the bar for any future funding. You never really want to have a down round. Best if each round his higher which this is. No discount. No warrants and $3 mark.
Alright, back to the $50M smackeroos
In one of the job reqs Verb mentioned a handful of companies. Some in the space and others creator companies.
"Highly knowledgeable and passionate about the Creator and Digital Video Economies. From major social incumbents like YouTube and TikTok, to emergent creator platforms like Patreon and NTWRK , to digital-native brands and publishers like Complex Networks and Food 52 , and much, much more
Patreon’s Valuation Triples to $4 Billion as Platform Draws Creators, Fans
Online company raises $155 million in latest round, led by new investor Tiger Global Management
https://www.wsj.com/articles/patreons-valuati...1617762374
Patreon raised 4% of their valuation.
NTWRK Got $50M, Assembly Hit $1B Valuation, and More LA Tech News
https://www.builtinla.com/2021/09/27/la-tech-news-092721
I couldn't find NTWRK but I did see their estimated revenue is $26.2M per year. I assume they are valued between $500M and $1.5M
I know Whatnot raised $150M in the Fall and valued at $1.5M so they raised 10% of their value
Whatnot Reaches $1.5 Billion Valuation
https://labusinessjournal.com/news/2021/sep/2...1-billion/
This is one of the rare profitable companies and raised $100M so 10% of their valuation
Profitable proptech Place raises $100M at a $1B valuation as Goldman Sachs leads its first round of funding
https://techcrunch.com/2021/11/17/place-a-pro...f-funding/
Complex Networks that was mentioned sold for $300M
BuzzFeed Acquires Complex Networks for $300 Million in Latest SPAC
The deal gives BuzzFeed an implied valuation of $1.5 billion
https://variety.com/2021/digital/news/buzzfee...235004331/
I think I said about 2 years ago when I first saw VerbLive, Verb should raise $100M. I got a few thumbs down with that one which is fine. But as you see, all these maturer startups usually raise between $50M and $150M. The ones at the next level of valuation (i.e. multi-billion) raise more.
Outreach Closes $200 Million Round; $4.4 Billion Valuation for Sales Engagement Category Leader
https://www.prnewswire.com/news-releases/outr...04239.html
The oddball is Food52. They got $83M and then another $80M in the same year.
Food52’s secret recipe for building a $100 million media empire
https://www.fastcompany.com/90633206/how-food...dia-empire
Exclusive: Food52 triples valuation with new investment from TCG
https://www.axios.com/tcg-chernin-group-food5...f70de.html
For a $163M raised for a website and some youtube videos. Yeah, I don't get it either, but I'm a microwave and grill kinds of person.
So Verb with up to $50M to enable MARKET, Verb.TV, acquisitions and what not, bodes well for the future. Time to sit back and watch the fun as the year unfolds.
That is an interesting perspective and something you pretty much rarely see. Usually funding comes in at 5%, 10% of valuation. Which I share some examples below.
I want to mention,
1.) 3i could have just went out and bought $3M shares on the open market. Might take awhile if they didn't want to run up the sp. But they didn't. And they certainly couldn't buy $50M worth in the open market without paying big bucks
2.) Verb isn't selling shares at a discount that will be flipped right over into the market. I would assume 3i would hang onto the shares or it would be a complete waste of time. The sp will be unaffected if/when Verb uses this.
3.)This debt financing and supplemental equity LOC facility had to happen first in order for Verb to make one or more acquisitions, the first of which would be at the end of Q1. Be nice to get that revenue on the Q2 books. Not only does this give them some cash to do the deal if it's not all stock, but the debt financing and LOC puts Verb in a stronger negotiating position for future acquisitions
4.) This sets the bar for any future funding. You never really want to have a down round. Best if each round his higher which this is. No discount. No warrants and $3 mark.
Alright, back to the $50M smackeroos
In one of the job reqs Verb mentioned a handful of companies. Some in the space and others creator companies.
"Highly knowledgeable and passionate about the Creator and Digital Video Economies. From major social incumbents like YouTube and TikTok, to emergent creator platforms like Patreon and NTWRK , to digital-native brands and publishers like Complex Networks and Food 52 , and much, much more
Patreon’s Valuation Triples to $4 Billion as Platform Draws Creators, Fans
Online company raises $155 million in latest round, led by new investor Tiger Global Management
https://www.wsj.com/articles/patreons-valuati...1617762374
Patreon raised 4% of their valuation.
NTWRK Got $50M, Assembly Hit $1B Valuation, and More LA Tech News
https://www.builtinla.com/2021/09/27/la-tech-news-092721
I couldn't find NTWRK but I did see their estimated revenue is $26.2M per year. I assume they are valued between $500M and $1.5M
I know Whatnot raised $150M in the Fall and valued at $1.5M so they raised 10% of their value
Whatnot Reaches $1.5 Billion Valuation
https://labusinessjournal.com/news/2021/sep/2...1-billion/
This is one of the rare profitable companies and raised $100M so 10% of their valuation
Profitable proptech Place raises $100M at a $1B valuation as Goldman Sachs leads its first round of funding
https://techcrunch.com/2021/11/17/place-a-pro...f-funding/
Complex Networks that was mentioned sold for $300M
BuzzFeed Acquires Complex Networks for $300 Million in Latest SPAC
The deal gives BuzzFeed an implied valuation of $1.5 billion
https://variety.com/2021/digital/news/buzzfee...235004331/
I think I said about 2 years ago when I first saw VerbLive, Verb should raise $100M. I got a few thumbs down with that one which is fine. But as you see, all these maturer startups usually raise between $50M and $150M. The ones at the next level of valuation (i.e. multi-billion) raise more.
Outreach Closes $200 Million Round; $4.4 Billion Valuation for Sales Engagement Category Leader
https://www.prnewswire.com/news-releases/outr...04239.html
The oddball is Food52. They got $83M and then another $80M in the same year.
Food52’s secret recipe for building a $100 million media empire
https://www.fastcompany.com/90633206/how-food...dia-empire
Exclusive: Food52 triples valuation with new investment from TCG
https://www.axios.com/tcg-chernin-group-food5...f70de.html
For a $163M raised for a website and some youtube videos. Yeah, I don't get it either, but I'm a microwave and grill kinds of person.
So Verb with up to $50M to enable MARKET, Verb.TV, acquisitions and what not, bodes well for the future. Time to sit back and watch the fun as the year unfolds.
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