Website-building company Squarespace confidentially files to go public

Squarespace founder Anthony Casalena speaks at the unveiling of the Knicks' jersey sponsorship with Squarespace at Madison Square Garden on October 10, 2017 in New York City.
Squarespace founder Anthony Casalena.

  • Squarespace announced Wednesday it had confidentially filed for a stock-market listing.
  • It didn’t say whether it would go public through an IPO or a direct listing.
  • The website-building company was last valued at $1.7 billion in December 2017.
  • Visit Business Insider’s homepage for more stories.

New York-based Squarespace announced Wednesday it had confidentially submitted paperwork for a stock-market listing with the US Securities and Exchange Commission (SEC).

The website building and hosting company didn’t specify whether it would go public through a direct listing or an initial public offering (IPO).

Squarespace didn’t immediately respond to Insider’s request for comment.

Read more: This actively managed SPAC ETF amassed $60 million assets within a month of launching. Its founder breaks down how to pick blank-check firms – and shares 3 to watch in 2021.

Squarespace was last valued at $1.7 billion in December 2017, when growth-equity firm General Atlantic invested $200 million in the platform, adding to the $40 million it invested in 2014, according to Crunchbase.

Squarespace makes software for people to build and host websites using pre-made templates and other features. It costs $16 per month, or $12 per month if you buy an annual subscription.

The company, which has a total of 1,143 employees, was founded in 2003 by CEO Anthony Casalena in his dorm room at the University of Maryland, according to the website.

It says that millions of websites have been created on the platform.

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Amazon-backed food delivery firm Deliveroo is now worth $7 billion after a $180 million pre-IPO funding round

Deliveroo CEO Will Shu
Deliveroo CEO Will Shu at President Macron’s tech summit in France in 2018. Shu said he was the only one who didn’t turn up in a suit.

  • Food delivery firm Deliveroo is now worth $7 billion after raising $180 million in fresh funding.
  • The Amazon-backed company is preparing to go public later in 2021.
  • Insider reported this week that UK-based Deliveroo could be valued at up to $13.6 billion when it floats, with one source pegging April for an IPO date.
  • Visit Business Insider’s homepage for more stories.

Amazon-backed food delivery firm Deliveroo is now valued above $7 billion after raising $180 million in fresh capital.

The new round was led by two of Deliveroo’s existing backers, Durable Capital Partners and Fidelity. Both are investors that put money into public as well as private firms.

UK-headquartered Deliveroo, which has experienced a boom in custom amid national lockdowns, also on Sunday confirmed plans for a stock market debut. The company, though run by American CEO Will Shu, is expected to list on London’s Stock Exchange.

Insider reported earlier this week that an IPO could value Deliveroo at £10 billion ($13.6 billion), and that the firm was potentially eyeing an April float.

That Durable Capital and Fidelity are upping their stakes now signals confidence in Deliveroo’s prospective share price and future growth. As one industry source put it: “Why buy in at $13 billion when you can buy in at $7 billion now?”

The gambit has worked before.

Both Durable Capital and Fidelity invested in Deliveroo’s US equivalent, DoorDash, around six months ahead of its December IPO at an approximately $16 billion valuation. On IPO, DoorDash topped a $32 billion valuation and its market cap now hovers around the $60 billion mark.

Deliveroo is based in the UK and competes with the likes of Uber Eats in Europe and parts of Asia. It does not currently operate in the US. It offers food, alcohol, and grocery deliveries on demand via an app and relies on a network of gig-economy cyclists and motorcyclists to ferry items to customers.

FILE PHOTO: A courier for food delivery service Deliveroo rides a bike in central Brussels, Belgium January 16, 2020. Picture taken January 16, 2020. REUTERS/ Yves Herman
A courier for food delivery service Deliveroo rides a bike in central Brussels

It was founded in 2013 by Shu, formerly an investment banker, and Greg Orlowski. Orlowski left in 2016, and Shu remains the CEO of the business.

An IPO would cap a rollercoaster year for the firm.

As is typical for high-growth, venture capital-backed firms, Deliveroo has been mostly loss-making to date. As the UK, its primary market, went into lockdown in the spring and restaurants shuttered, the firm warned it may collapse.

The situation was exacerbated by the UK’s competition regulator denying Deliveroo access to a large tranche of $575 million in funding, led by Amazon in 2019, on competition grounds. Deliveroo laid off about 300 staffers to reduce costs.

The regulator eventually cleared the funding in April, concluding there was no antitrust threat from Amazon’s involvement. Deliveroo’s business also began to improve as restaurants turned to delivery apps for revenue and consumers upped their takeaway orders, bored of home cooking.

Having initially warned of collapse, Deliveroo towards the end of the year said it became “operationally profitable” in 2020.

Its most recent publicly available financials showed increased revenue for 2019 of $1 billion, a gross profit margin of around 24%, and heavier year-on-year pre-tax losses of $393 million.

Got a tip on Deliveroo? Contact the reporter behind this story, Shona Ghosh, at sghosh@businessinsider.com, shonaghosh@protonmail.com, or +447412061471 for Signal.

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Meet Whitney Wolfe Herd, the 31-year-old CEO of the female-led dating app Bumble that just publicly filed for an IPO

Whitney Wolfe Bumble
Bumble CEO Whitney Wolfe Herd.

  • Once a victim of online harassment, Whitney Wolfe Herd is working to make the internet a kinder place for women with female-led dating app Bumble.
  • Before Bumble, Wolfe Herd cofounded rival dating app Tinder, but left the company two years later and filed a sexual harassment and discrimination lawsuit that was later settled.
  • Bumble publicly filed a form S-1 for an IPO with the Securities and Exchange Commission on Friday for an offering size of up to $100 million.
  • Wolfe Herd has an estimated net worth of $575 million, is married to a Texas oil heir, and splits her time between two homes in Texas.
  • Visit Business Insider’s homepage for more stories.

Whitney Wolfe Herd is used to making bold moves. 

Perhaps that’s why on the dating app she cofounded, women make the first move in heterosexual relationships. And Wolfe Herd’s next move may be among her boldest – Bumble publicly filed for an IPO on Friday.

The dating company filed a form S-1 for its IPO with the Securities and Exchange Commission (SEC) for an offering size of up to $100 million. But that figure is likely a placeholder: Bumble could seek a valuation as high as $8 billion, Bloomberg reported.

The company is looking to trade under the symbol “BMBL” on the Nasdaq. Bumble confidentially filed IPO paperwork with the SEC in 2020, and Bloomberg reported it planned on going public in February, possibly around Valentine’s Day, of this year.

A representative for Wolfe Herd at Bumble did not respond to Business Insider’s request for comment on Wolfe Herd’s career, net worth, or personal life.

Keep reading to learn more about Bumble CEO Whitney Wolfe Herd.

Whitney Wolfe Herd, 31, is a Utah native.

Whitney Wolfe Bumble
Whitney Wolfe Herd.

Wolfe Herd was born and raised in Salt Lake City, Utah, The Times of London reported. Her father is a property developer and her mother is a homemaker, per The Times.

The CEO has been a feminist from an early age, telling The Times that she disliked how Utah’s dating culture was dominated by men — women were expected to wait for them to make the first move.

Wolfe Herd went on to attend Southern Methodist University in Texas, and was a member of Kappa Kappa Gamma, per Fast Company. She’s still close with many of her sorority sisters and even employs a few at Bumble.

Wolfe Herd also launched her first business at 19 while still in college, per Money Inc. After the Deepwater Horizon oil spill pumped crude oil into the Gulf of Mexico for five months in 2010, Wolfe Herd enlisted celebrity stylist Patrick Aufdenkamp to design tote bags that could be sold to help fund relief efforts. The resulting nonprofit, called the Help Us Get Cleaned Up Project, became nationally known after Nicole Richie and Rachel Zoe were spotted with Wolfe Herd’s bags.

After earning a degree in International Studies, Wolfe Herd did a brief stint in Southeast Asia.

whitney wolfe bumble
Whitney Wolfe Herd.

Wolfe Herd spent her time in Asia volunteering at local orphanages, per Money Inc.

While Wolfe Herd is currently at the head of Bumble, it isn’t the first dating app she cofounded.

tinder headquarters
Tinder Headquarters on the Sunset Strip on August 28, 2020 in West Hollywood, California.

At 22, Wolfe Herd was hired to work at startup incubator Hatch Labs in Los Angeles, according to The Times of London. After hours, she starting collaborating with a group that was looking to build a dating app.

That app, which is now known as Tinder, quickly grew into a global phenomenon with Wolfe Herd’s help. She even came up with the name Tinder, per The Telegraph. She is credited as a cofounder and spent two years as the company’s vice president of marketing, per The Times.

Wolfe Herd didn’t leave Tinder on good terms.

justin mateen sean rad tinder
Wolfe Herd’s fellow Tinder cofounders, Justin Mateen and Sean Rad.

During her tenure at Tinder, Wolfe Herd dated fellow cofounder and her then-boss Justin Mateen, per The Times of London. She left the company shortly after they split, and filed a lawsuit alleging that she had experienced sexual harassment and discrimination.

The legal dispute was settled privately outside of court, with neither party admitting to wrongdoing.

Following the legal battle, Wolfe Herd also faced online harassment.

“I was inundated with hatred online, lots of aggressive behavior, people calling me names, really painful things that I’d never experienced,” Wolfe Herd told The Times in 2018. “I felt like my entire self-worth, any confidence that I had, had been sucked away. There were dark times when I thought, ‘Well, this is it. I won’t have a career ever again. I’m 24, coming out of one of the world’s hottest tech companies, but the internet hates me.’ It was a horrible time. Then I woke up one morning and thought, ‘I’m going to rebuild myself.'”

Wolfe Herd launched Bumble in 2014, originally planning to build a female-focused social network instead of a dating app.

Whitney Wolfe Bumble
Whitney Wolfe Herd.

Wolfe Herd was persuaded to forgo her original plan for the app by former business partner and Russian billionaire Andrey Andreev, according to CNN Business.

The app’s women-led model was initially inspired by Sadie Hawkins school dances, where women ask men to be their date, Wolfe Herd told Business Insider in 2015.

“We’re definitely not trying to be sexist, that’s not the goal,” Wolfe Herd said. “I know guys get sick of making the first move all the time. Why does a girl feel like she should sit and wait around? Why is there this standard that, as a woman, you can get your dream job but you can’t talk to a guy first? Let’s make dating feel more modern.”

Wolfe Herd has since expanded the app with additional services to help women meet new friends and expand their professional networks, called Bumble BFF and Bumble Bizz respectively. Bumble has also invested in other apps, including gay dating app Chappy, TechCrunch reported.

Bumble now says it has 75 million users in 150 countries, making it second only to Tinder in popularity.

Wolfe Herd also reorganized and took the helm of Bumble’s former parent company, Magic Lab, after its owner was ousted amid accusations of racism and sexism.

Andrey Andreev whitney wolfe herd
Andrey Andreev and Whitney Wolfe Herd.

In addition to being Wolfe Herd’s close friend and business partner who she said she was “incredibly in sync” with and called “two to five times a day,” Andreev owned a 79% stake in Bumble, according to Fast Company.

After the allegations of racism and sexism against Andreev were published by Forbes in 2019, Wolfe Herd released a statement saying she had had “nothing but positive and respectful” experiences with Andreev but “would never challenge someone’s feelings or experiences.”

“All of us at Bumble are mortified by the allegations about Badoo (Bumble’s majority owner) from the years before Bumble was born, as chronicled in the Forbes story,” Wolfe Herd said in the statement. “I am saddened and sickened to hear that anyone, of any gender, would ever be made to feel marginalized or mistreated in any capacity at their workplace.”

Even before she took on her expanded role, Wolfe Herd was already a workaholic.

Whitney Wolfe Herd
Whitney Wolfe Herd.

Wolfe Herd typically wakes up every morning at 5:15 a.m. and immediately starts responding to emails, she told The Times of London.

She has even been known to wake up every two hours during the night to check her inbox. “I’m trying to stop that,” Wolfe Herd told The Times in 2017. “I get no downtime. I don’t get a weekend, I haven’t lived like a twenty-something since I started Bumble in 2014.”

Wolfe Herd is also politically active, helping outlaw digital sexual harassment in Texas.

whitney wolfe
Whitney Wolfe Herd.

Sending unsolicited nude photos — a phenomenon that has plagued dating apps and even AirDrop — is punishable under a new law championed by Wolfe Herd, Inc. reported. She is now advocating for a similar law in California and hopes it will soon be federal law, too.

“It is time that our laws mirror this way we lead double lives, in the physical and the digital,” Wolfe Herd told Inc. shortly after the Texas law was passed in August 2019. “You look at government right now, it only protects the physical world. But our youth are spending a lot more time in the digital world than they are in the physical.”

 

The CEO says she doesn’t have political aspirations of her own, however. “I could never run for [office],” Wolfe Herd told The Times of London, saying that she is frequently asked if she’s considered it. “There are people so much smarter than me.”

Wolfe Herd is also a mom.

Whitney Wolfe Herd and husband Michael Herd
Whitney Wolfe Herd and husband Michael Herd in 2018.

Wolfe Herd married Texas oil heir Michael Herd in an elegant three-day ceremony on Italy’s Amalfi Coast in 2017, per Vogue.

The couple first met while skiing in Aspen in 2013, but Wolfe Herd first saw him on a dating app. “He has the kind of face you remember,” she told The Telegraph.

He is now the president of the oil and gas field operator founded by his late grandfather, Herd Producing Company, and also owns a high-end farm to table restaurant called the Grove Kitchen + Gardens.

✨👰🤵✨

A post shared by Whitney Wolfe Herd (@whitney) on Sep 8, 2017 at 12:09pm PDT

 

The pair have a nine-month-old son named Bobby after Michael’s late grandfather, and he makes frequent appearances on Wolfe Herd’s Instagram account.

Happiness 🌼

A post shared by Whitney Wolfe Herd (@whitney) on Jul 16, 2020 at 10:29am PDT

 

The couple also has a Great Dane named Duke and a yellow lab named Jett, per The New York Times.

“[Duke] is a kind animal but does not understand how big he is,” Wolfe Herd told The Times in 2019, while describing her daily after work routine. “At 175 pounds, he could quite literally kill me. I have to lock myself in the car while I wait for my husband to come home and get him away from me.”

Wolfe Herd has been open about her struggles with anxiety.

whitney wolfe herd 2018
Whitney Wolfe Herd in 2018.

“I haven’t gone through the testing, but I should,” Wolfe Herd told The Times of London. “It’s anxiety about everything. I worry about awful things happening to people I love. They say phones are a strong catalyst for making anxiety worse, so I have this interesting balance — how do I make sure I’m on top of everything, but also preserve my mental health?”

The Herd family splits time between their two Texas houses.

Austin Texas Capitol Congress Ave Skyline
Austin, Texas.

The Herds have one home along the Colorado River in Austin near Bumble’s headquarters and another further north in Tyler, near Michael Herd’s office, per The New York Times. They also own a vacation home in Aspen, Bumble’s chief brand officer Alex Williamson told Aspen Magazine.

The couple also owns Michael’s 6.5-acre family estate on Lake Austin, according to Mansion Global. The waterfront compound boasts a movie theater, helipad, putting green, 10 garages, multiple boat docks, and a guest house, as well as a 5,000 square foot cabana designed for entertaining. That property is currently listed for sale for $28.5 million.

They also travel a lot.

Whitney Wolfe Herd
Bumble CEO Whitney Wolfe Herd.

Wolfe Herd takes frequent trips for both work and pleasure. Wolfe Herd told Travel +Leisure in 2017 that her all-time favorite trips include a sailing expedition through Myanmar and Thailand and a family trip to India.

For their honeymoon, Wolfe Herd and her husband stayed at Four Seasons resorts in both Bora Bora and Maui after leaving the site of their destination wedding in Italy, according to a blog post by the Indagare, the group that planned the trip.

Wolfe Herd told Indagare that she wanted a beach-heavy honeymoon because she and Herd were “looking for the ideal place to unwind, where we could take in the sun and swim. Our favorite moments were just relaxing and appreciating each other in such beautiful locations.”

In July 2019, she celebrated her 30th birthday with a multi-day party on a yacht off the coast of Capri, Italy, per Guest of a Guest.

This is 30 🤰🍝🎈

A post shared by Whitney Wolfe Herd (@whitney) on Jul 5, 2019 at 3:07am PDT

 

Wolfe Herd has an estimated net worth of $575 million, but she may soon be much richer.

bumble whitney wolfe herd
Bumble CEO Whitney Wolfe Herd is seen outside Good Morning America on January 31, 2019 in New York City.

Wolfe Herd’s multimillion-dollar fortune landed her at No. 39 on Forbes’ list of the wealthiest self-made women in America in 2020. If Bumble’s IPO performs well, her fortune could grow exponentially thanks to her 19% stake in the company.

Bumble’s public filing with the SEC revealed the company generated $488.9 million in revenue in 2019, representing 35.8% year-over-year growth. The firm generated $376.6 million in revenue between January 29, 2020, and September 30, 2020. Bumble has 42 million monthly average users and 2.4 million paying users, per the filing.

The company could appear on public markets as soon as 2021, Insider previously reported.

“I feel like what I’m doing is quite important,” Wolfe Herd told The Times of London in 2018. “A lot of people are, like, ‘What do you mean it’s important? It’s a dating app.’ But it’s important because connections are at the root everything we do. Human connection defines our happiness and our health. This company feels like a piece of me. I know this sounds cheesy and weird, but I really feel like it’s my mission.”

Read the original article on Business Insider

Churchill Capital Corp IV extends 2-day surge to over 50% on news of plans to take Lucid Motors public via SPAC

Electric vehicle charging.
Electric vehicle charging.

  • Shares of Churchill Capital Corp. IV are up over 50% in a two-day streak to start the week.
  • News of the SPAC potentially taking EV company Lucid Motors public is driving the share price higher.
  • The fourth of seven ‘blank-check’ companies operated by Michael Klein, Churchill Capital Corp. IV’s plan for Lucid Motors would keep the SPAC craze going in 2021.
  • Sign up here our daily newsletter, 10 Things Before the Opening Bell.

Shares of Churchill Capital Corp IV soared to start the week on news the special purpose acquisition company is in talks to take Lucid Motors public, per Bloomberg.

Churchill Capital Corp IV is operated by veteran Wall Street dealmaker Michael Klein, and is the fourth of seven ‘blank-check’ companies which Klein has been using to take partner companies public.

In this case, the partner firm is Lucid Motors, a relatively well-established EV manufacturer based out of Newark, California, and which targets the luxury end of the car market. The deal could potentially value Lucid at $15 billion, according to Bloomberg. 

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

Lucid is yet another competitor in an increasingly crowded EV space. However, the company has a little more going for them than many of its competitors.

Lucid boasts world-class EV tech and is owned in part by the Public Investment Fund of Saudi Arabia after a 2019 funding round valued at over $1 billion.

In the past year, the news around Lucid heated up significantly, especially after the company’s September announcement of their first full-sized EV, the Air.

Starting at $77,400 ,the Air features a 9.9 second quarter-mile and fast-charging that captures 300 miles of new EV range in just 20 minutes.

Shares of Churchill Capital Corp IV are trading close to $15 after hovering around the $10 mark for months. The SPAC was the third most traded name among Fidelity customers as of Tuesday morning, behind EV makers Nio and Tesla, according to data from Fidelity.

Read the original article on Business Insider

Hundreds of startups go public every year. Only 20 have ever been founded and led by women.

Katrina Lake
Katrina Lake is the founder and chief executive of Stitch Fix. She is one of just 20 women who have led a startup through to an initial public offering.

  • Each year since the New York Stock Exchange was founded, in 1817, hundreds of companies have gone public. Only 20 have been founded and led to an IPO by women.
  • There are many reasons women and minorities have been held back. Among them: Fewer than 13% of all VC decision-makers are women, and less than 3% of all VC dollars flow to companies led only by women.
  • To achieve gender equality, women need to found and join the next Fortune 500s to shape a diverse corporate culture from the beginning and accumulate generational wealth for themselves.
  • Visit Business Insider’s homepage for more stories.

2020 was a record year for initial public offerings in the US, with 442 logged as of December 14. Yet only five of those were companies founded and led by women, according to research by Business Insider and information provided by Nasdaq. 

Historically, only 20 women have ever founded and led a company through to an IPO.

Some companies have gone public with female CEOs who were not their founders, but that number is small compared to the majority (at this writing, only nine companies have fit that description this year).

The jarring discrepancy was pointed out by Julie Wainwright, the founder of the luxury consignment shop The Real Real. In May 2019, Wainwright became the 15th woman to found and take a company public.

To achieve gender equality, the fastest way forward is to close the entrepreneurial gap and support more women founding Fortune 500s. That’s because women aren’t reaching powerful positions often enough when they go the traditional corporate route.

Also, we need more women to try and become insanely rich.

Money equals power, and the only way to generate enough wealth to become one of the world’s most powerful people is to start a company.

Corporate America is broken for women. They need to blow it up and rebuild it if they want more leadership positions.

We know women fall behind men from the very first promotion.

A 2019 Lean In study called this the “broken rung” in the corporate ladder. The workforce won’t improve for women anytime soon.

  • At the current rate, it will take until 2059 for women to achieve pay parity.
  • Women who do reach the top still hit a ceiling. They get stuck as COOs – the No. 2’s.
  • Only 7% of Fortune 500 CEOs are women.

The best way to fix this isn’t to blame or exclude men, who are in charge and can be powerful allies. But we also can’t expect them to change all their unconscious biases, which can be blind spots.

Instead, corporate America needs to be blown up and rebuilt, with diversity as a pillar from inception, led by more women and BIPOC founders.

If women want to become as powerful as men, they need to create rivaling fortunes. The only way to do that is to start the next Fortune 500s.

rich founders
The world’s 10 richest people in 2019 were all men. They all founded their own companies. In 2020, Alice Walton, whose father created Walmart, crept up to No. 9 with a net worth of $54.4 billion.

Warren Buffett. Jeff Bezos. Bill Gates. The richest people in the world all started their own companies – or inherited their fortunes from someone who did.

That’s because founders tend to own large chunks of their companies when they exit, far larger portions than employees working for them ever could.

If women want to become as powerful as men, they need to start the next Fortune 500s and create rivaling fortunes.

But in the 204-year history of the New York Stock Exchange and Nasdaq – where hundreds of companies go public each year – only 20 have been founded and led by women. Eighteen of those IPOs were in just the past seven years.

When women do try to start companies, numerous pitfalls prevent them from scaling their ventures.

Only 13% of all venture-capitalist decision-makers are women, according to an AllRaise.org follow-up to its 2019 report. Pitchbook reported that in 2019 2.7% of VC capital went to companies founded only by women, while companies cofounded by both men and women garnered 14%.

For women of color, the investment gap is even wider.

DigitalUndivided is a nonprofit social startup focused on programs and training that foster economic growth in Black and Latinx communities. In 2016 it launched ProjectDiane, a biennial research study that tracks investment in companies founded by Black and Latinx women. Its latest report, released this month, showed some progress for these communities. But not enough.

Total funds raised by Black and Latinx women in 2019 grew to $3.1 billion, ProjectDiane data shows. The number of Black women founders reported to hit the “million-dollar club” in investment rose to 93, compared to 34 in 2018, while 90 Latinx women hit that milestone.

But the report points out glaring gaps. The median seed funding for startups overall is $2.1 million, but for Black and Latinx women founders the median is $475,000. For those raising less than $1 million, the median seed funding drops to $125,000 for Black women and $200,000 for Latinx women.

Since 2018, Black and Latinx women have received only .64% of VC funding.

Since 2018, Black and Latinx women have received only .64% of VC funding.

“Our mission is to create a world where all women own their work, where women have wealth,” Lauren Maillian, the CEO of Digital Undivided, said. “It is only through our jobs, our careers, and our work, that is the path to wealth creation. Not just for women, for all people, but women of color get left behind that.”

“We upskill and re-skill and equip women of color to compete in these spaces and places that are not designed for them to succeed,” Maillian said.

Lauren Maillian, CEO of Digital Undivided
Lauren Maillian is the CEO of DigitalUndivided, which launched Project Diane to track funding of companies founded by Black and Latinx women.

When female founders do get funded, expectations are different

Rent the Runway CEO Jennifer Hyman is one of the most successful female founders. She has been outspoken about the different challenges men and women founders face, from investors and the press.

“I haven’t been given the permission or privilege to lose a billion every quarter,” Hyman said on CNBC, shortly after profitless Uber went public and cash-burning WeWork filed its now rescinded S-1.

Julie Wainwright, the founder and CEO of The Real Real, said she sees three main barriers to entry for women in entrepreneurship. One of them is the expectations women set for themselves.

  • Women aren’t thinking about starting businesses or planning for outsized success early enough. And when they do, they aren’t dreaming big enough. One survey of 57 women CEOs found that only 12% of them planned to be CEO someday. The rest had to be told it was something they should consider.
  • There aren’t enough women in venture capital with big funds behind them who can lead large investments and write follow-on checks. “When you raise capital, if you’re running something big, it will require more money, and that person who initially funded you will go back to their fund to lead the next round,” Wainwright says. “And they have to have enough capacity to keep funding you so you’re not left in the cold. . . . You need people with billions behind you.”
  • There’s no “PayPal mafia” for women who can support female founders, rally behind them, and push through their success. The PayPal mafia refers to the early PayPal employees, including Max Levchin, Joe Lonsdale, and Peter Thiel, who’ve all gone on to be successful entrepreneurs, aided partly by their friendship during PayPal’s startup days. “Those guys have a tremendous network where they’re supporting each other,” Wainwright says. “It’s not a formal thing. But when people come up with ideas, they push them to think bigger. They’ve got the support of the mob once they go. And the mob isn’t there to make sure they’re successful. So because there are not enough women in startups, there are not enough mobs.”
Julie Wainwright The Real Real
Julie Wainwright is the former CEO of Pets.com and the founder of The Real Real.

Despite the barriers, it’s time for more women to try. To stop thinking What if it fails? and instead think What if it works?

For an extra nudge, Wainwright knows a widely kept secret: Most successful startup founders aren’t anything special. The difference is they tried, and you didn’t.

“To be honest, half the people that I meet are not a Bill Gates, Steve Jobs, or even an Elon Musk,” she said.

“What they are is they’re determined. They have a goal and they have a big vision and they don’t give up, and they did it. They didn’t think about everything that would possibly go wrong. They thought, I am going to do this, I can make this happen.

Women starting businesses is great for the economy

mckinsey gender study

Gender equality in business isn’t only a moral imperative. When it’s achieved, it improves a company’s bottom line and boosts the global economy.

A recent McKinsey study found that gender equality could unlock up to $28 trillion in global GDP.

Companies also perform better when more women are in power. A Bank of America paper found that S&P 500 companies with more diverse boards and a higher percentage of women in leadership positions delivered higher returns on equity.

Fortune 1000 companies with female CEOs have been found to perform three times as well as those led by men.

“Understanding the link between women’s empowerment and the wealth and health of societies is crucial for humanity,” Melinda Gates wrote in “The Moment of Lift.”

“If you want to lift up humanity, empower women, she said. “It is the most comprehensive, pervasive, high-leverage investment you can make in human beings.”

Read the original article on Business Insider

Car-rental app Turo aims to list shares publicly in 2021, report says

andre haddad turo ceo
  • Car-rental startup Turo aims to list its shares publicly in 2021 after a strong end to 2020, the company’s CEO told The Wall Street Journal in a report published Friday.
  • Turo allows people to offer their private vehicles for rental, a car-sharing alternative to industry giants such as Hertz or Avis.
  • CEO Andre Haddad isn’t yet sure whether the company will pursue a traditional IPO or an alternative like a blank-check-company merger, according to The Journal.
  • The startup slashed costs and laid-off workers in 2020 to shore up extra cash. Those actions helped the company cut its second-half loss to $7.2 million, down from $46.9 million in the second half of 2019.
  • Visit Business Insider’s homepage for more stories.

Turo – a car-sharing app – plans to publicly list its shares in 2021 following a strong 2020 performance, The Wall Street Journal reported on Friday.

The startup ended 2020 in a healthy financial position despite the coronavirus pandemic. Layoffs and slashed marketing costs extended Turo’s cash runway by three years, and the company reported its first profitable quarter in 2020, according to the report. Turo CEO Andre Haddad expects the company to turn a full-year profit in 2022.

Turo’s website allows users to rent their own cars, whether they’re compact sedans or high-powered supercars. Those looking to rent private vehicles can then select from Turo’s marketplace instead of offerings from a legacy company like Hertz or Avis. Turo takes a cut of rentals’ revenue. 

Read more: Wall Street’s biggest firms are warning that these 7 things could crash the stock market’s party in 2021

Haddad told The Journal he is undecided on whether the company will raise capital with a traditional IPO or pursue an alternative method for listing shares. Direct listings, in which companies list shares without raising any capital, have grown increasingly popular with tech companies.

Merging with a blank-check company could also take Turo shares public. Special-purpose acquisition companies flourished in 2020 and drove record levels of IPO fundraising throughout the year. The companies raise cash through public offerings and use those funds to acquire a private firm. The merged entity then trades publicly.

Turo projects to reach a record $153 million in sales for 2020, according to The Journal. Losses in the second half of the year are estimated to fall to $7.2 million down from $46.9 million in the second half of 2019. Second-half revenue is set to land roughly 7% higher from the year-ago period too, The Journal reported.

Some of the company’s improved performance can be tied to the pandemic and its effect on travel. With air and cruise travel hit hardest by the health crisis, car rentals offered one of the few methods to get away from home in relative safety. The private-rental marketplace might also receive a boost from a pickup in auto sales through the pandemic.

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Wish falls as much as 16% below IPO price in trading debut after raising $1.1 billion

NYSE Trader
  • Wish parent company ContextLogic fell as much as 14% in its trading debut on Wednesday, giving the e-commerce company a market valuation of about $15 billion.
  • The company raised $1.1 billion when it priced its IPO at $24 per share, giving it an initial market valuation of $17 billion on a fully diluted basis.
  • An IPO frenzy has quickly materialized in the fourth quarter of 2020, given the eye-popping surge in recent trading debuts for Airbnb, DoorDash, and C3.ai. 
  • Watch Wish trade live here.

Wish parent company ContextLogic fell 5% at the open of its trading debut on Wednesday, giving the e-commerce company a market valuation of about $15 billion on a fully diluted basis.

The stock opened at $22.75 and hit an intraday low of $20.05, representing a decline of 16% from its initial public offering price of $24.

Wish priced its IPO at $24 per share, raising $1.1 billion in proceeds at a valuation of $17 billion. That’s well ahead of the company’s last fundraising round as a private company in August 2019, when the firm raised $300 million at a valuation of $11 billion.

Wish was created by former Google engineer Piotr Szulczewski. The e-commerce platform relies on a personalized visual browsing experience rather than the traditional search and go shopping habits facilitated by a search bar.

Wish’s catalog has grown to more than 150 million items, and it sells nearly 2 million items per day, according to its S-1 filing. The company did $1.9 billion in revenue in 2019 and is not yet profitable.

Wish’s IPO debut and subsequent decline is the opposite of high flying public debuts this quarter. Last week, Airbnb, DoorDash and C3.ai posted substantial gains of 113%, 86% and 174%, respectively. And in September, Snowflake completed the largest software-technology IPO in history and has been on a tear since its debut.

Read more: Fund manager Brian Barish has returned more than 550% to investors over 2 decades, and he just had 2 of his best years ever. He told us how he did it – and 3 top picks for the next 5 years.

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Wish reportedly prices IPO at $24 per share, will raise $1.1 billion at a valuation of $17 billion

Peter Szulczewski
  • Wish parent company ContextLogic priced its shares at $24 each on Tuesday ahead of its IPO, Bloomberg first reported.
  • That’s at the top end of Wish’s previously expected IPO pricing range of $22 to $24 per share.
  • The offering is expected to raise $1.1 billion in funds for Wish, giving the e-commerce platform a valuation of $17 billion on a fully diluted basis, according to Bloomberg.
  • Wish will trade on the Nasdaq exchange under the ticker symbol “WISH.”
  • Visit the Business Insider homepage for more stories.

Wish’s parent company ContextLogic priced its shares at $24 each on Tuesday ahead of its initial public offering, Bloomberg first reported.

The final price came in at the top end of its previously expected range of $22 to $24.

Wish’s IPO will raise as much as $1.1 billion in funds for the company, giving it an initial valuation of $17 billion on a fully diluted basis, according to Bloomberg. The e-commerce platform will trade on the Nasdaq exchange under the ticker symbol “WISH.”

In its last private funding round led by General Atlantic in August 2019, when the San Francisco-based company raised $300 million, Wish was valued at $11 billion. The firm had a near $9 billion valuation in late 2017. 

The company has raised a total of $2.1 billion in private funding since its founding in 2010, according to data from Crunchbase.

Read More: Shark Tank investor Kevin O’Leary told us 2 concrete strategies for building wealth over time – and shared how a rude awakening during the pandemic led him to build a new investing app

Wish was created by former Google engineer Piotr Szulczewski. The e-commerce platform relies on a personalized visual browsing experience rather than the traditional search and go shopping habits facilitated by a search bar.

Wish’s catalog has grown to more than 150 million items, and it sells nearly 2 million items per day, according to its S-1 filing. The company did $1.9 billion in revenue in 2019 and is not yet profitable.

Wish will forge ahead with its IPO, unlike Roblox and Affirm, who both postponed their previously planned December IPOs following the strong showings by DoorDash and Airbnb.

According to Bloomberg data, US listings have already raised a record $156 billion in 2020, in part fueled by the rise in blank-check special-purpose acquisition companies.

Lead underwriters of the offering include Goldman Sachs, JPMorgan, and Bank of America.

Read more: From Wall Street heavyweights to boutique investment firms, we break down what 7 fund managers and market strategists think about Brexit as the ‘midnight hour’ approaches.

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Airbnb and DoorDash’s post-IPO stock pops represent an ‘epic level of incompetency,’ says a former banker who led one of the world’s largest IPOs ever

Imran Khan
  • Imran Khan told CNBC on Tuesday that the recent post-IPO stock pops including those of Airbnb and DoorDash represent an  “epic level of incompetency” from the bankers who underwrote the stocks.
  • The former banker, who led Alibaba’s IPO in 2014, said that it’s the job of the bankers to understand the market and price the IPO’s correctly: “Why are you getting paid 5 to 6% if you can’t figure that out?” Khan asked.
  • “When the stock doubles for a very high large market cap company, clearly something didn’t work right here,” he added.
  • Shares of both Airbnb and DoorDash skyrocketed after their public debuts.
  • Visit the Business Insider homepage for more stories.

Imran Khan told CNBC on Tuesday that the recent post-IPO stock pops including those of Airbnb and DoorDash represent an “epic level of incompetency” from the bankers who underwrote the stocks. 

The former banker who led Alibaba’s IPO in 2014 said that it’s the bankers job to understand the market and price the IPO’s correctly. Right now, bankers could be doing a “much better job,” said Khan. Airbnb leaped 115% on its first day of trading-its IPO offering price was $68, but it went on to hit an intraday high of $165. Meanwhile, DoorDash opened at $182 on its public debut, 78% above its initial-public-offering price of $102.

Khan also said that DoorDash and Airbnb were not obscure companies, and that bankers should have known better.

“Why are you getting paid 5 to 6% if you can’t figure that out?” Khan asked.

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“When the stock doubles for a very high large market cap company, clearly something didn’t work right here,” he added. 

Khan was also the chief strategy officer of Snapchat during its 2017 IPO. SNAP gained as much as 52% on its first day of public trading.

The Verishop founder and CEO said that these that these stock pops are causing investors to lose confidence in the IPO process. He doesn’t think the system of bringing companies to market is broken, but he said bankers could perform better.

“I think when the market gets really busy, a lot of the times bankers get really focused on chasing deals and client management, as opposed to doing their job,” said Khan. 

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Affirm joins Roblox in delaying its planned 2020 IPO after monster gains from Airbnb, Doordash

affirm installment loan
  • Affirm is delaying its planned IPO until next year, making it the second company in days to put their public debut on hold, according to The Wall Street Journal.
  • The move comes shortly after Roblox decided to postpone its planned 2020 IPO until next year to seek a higher price, given the strong investor demand for high-growth tech IPOs.
  • The recent IPO frenzy has been accelerated by the strong trading debuts of Airbnb and DoorDash earlier this week.
  • Visit Business Insider’s homepage for more stories.

Affirm’s planned 2020 IPO has been put on hold until next year, The Wall Street Journal reported on Saturday, citing people familiar with the matter.

The point-of-sale lender’s decision to postpone its IPO comes shortly after Roblox decided to postpone its planned 2020 IPO until next year to seek a higher price, given the strong investor demand for high-growth tech IPOs.

Affirm planned to begin pitching its shares to potential investors this coming week, and was on track to receive a market valuation of as much as $10 billion, according to The Journal.

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Part of the reason Affirm delayed its offering was due to the high price spikes in recent offerings from Airbnb and DoorDash, as well as delays at the Securities Exchange Commission due to a surge in listing requests from private companies, the Journal reported.

Airbnb surged as much as 143% in its first day of trades on Thursday, while DoorDash closed higher by 86% in its first day of trading on Wednesday.

Now, Affirm’s public debut won’t come until January at the earliest, according to the report. 

Affirm and Roblox are attempting to strike a delicate balance of not leaving any money on the table by pricing their IPO at too low of a price, yet also not pricing their shares too high, which might lead to a weak trading debut. Meanwhile, both companies are hoping (and betting on) that the IPO window remains open early next year.

A steep correction in the stock market can occur at any time, closing the IPO window, as that’s not an ideal environment for a private company to go public.

BlackRock CEO Larry Fink believes the recent IPO frenzy is “unsustainable” and could lead to “many accidents.”

Read More: Cathie Wood is beating 99% of fund managers this year. The ARK CEO and her team share their outlooks for 2021 – including thoughts on Tesla’s $5 billion stock sale, the Salesforce-Slack tie-up, and bitcoin’s meteoric rise.

Read the original article on Business Insider