The Chosen One? NYSE Plays Coy on Facebook Plans

By Connie Loizos — 4 years ago

The New York Stock Exchange and Nasdaq have always been fierce competitors, but as different accounts surface about which exchange Facebook has chosen or is about to choose, the public relations’ battle appears to be heating up. At least, the New York Stock Exchange seems eager to send a message to potential future issuers in […]


Slideshow: How This Year’s 10 Biggest VC-Backed IPOs Fared In The Market Plunge

By Lawrence Aragon — 5 years ago

As you are well aware by now, the stock market plunged today on fears that the U.S. economy is slipping back into a recession and concerns about a debt crisis in Europe.

It was the biggest selloff in two years, with the Dow and the S&P 500 both declining by more than 4% and the Nasdaq falling by 5 percent.

I was curious how this year’s crop of VC-backed companies fared in the correction, so I took a look at the performance of 2011’s 10 largest IPOs of U.S.-based VC-backed companies. Given that I was expecting to find a bloodbath, I


Pandora Fails to Reassure on Royalties

By Reuters News — 5 years ago

(Reuters) – Shares of Pandora Media Inc dropped nearly 4 percent on Tuesday after the online radio company said it will not renegotiate fees paid to music companies until 2014, offering little comfort to investors worried about hefty royalty charges. The Internet music-streaming service operator said on its first analysts’ conference call that improved margins […]


Top 10 Hub Posts This Week Focus On Accel Returns, Michael Arrington, Hot VC Markets

By David M. Toll — 5 years ago

What was hot on peHUB this week? Posts that garnered the most pageviews from regular readers from June 20 to June 24 included reader opinions about the SEC’s registration carve-out for venture capital firms; returns generated by Austin Ventures and Morgenthaler provided by UTIMCO (for the second week in a row); and the top five strategic buyers of sponsor-backed companies; and more.

1. Accel-erating Returns at the Top-Tier VC, by Jonathan Marino

2. UTIMCO Holds 7 Austin Ventures Funds, 4 of Which Have Negative IRRS, by Mark Boslet (subscribers only)

3. New Venture Commitments Fall at UTIMCO, by Mark Boslet

4. The Flame-Throwing History of Michael Arrington, by Connie Loizos

5. IRRs for Eight Morgenthaler , Courtesy of UTIMCO Funds, by Mark Boslet (subscribers only)

6. Cloud, Social Media, Health Services Top List of Hottest Venture Markets, by Mark Boslet

7. 5 Top Strategic Buyers Of Sponsor-Backed Companies, by Bernard Vaughan

8. Winklevoss Twins Give Up Facebook Appeal, by Jonathan Stempel

9. Top 10 Winners in Pandora’s IPO, by Lawrence Aragon (subscribers only)

10. TALK BACK: The SEC Defines Venture Capital, by Jonathan Marino


Poll Results: Nearly 75% Think We ARE In an Internet Bubble

By Luisa Beltran — 5 years ago

In case anyone is wondering, we are in an internet bubble.

That’s according to the results of our weekly poll. Yesterday, we wanted to know if our readers thought we were in another bubble (the first Internet bubble, the so-called “dot. com bust” occurred early in the last decade). A very resounding 74.6% think we are in a bubble. Of course, this means that 25.4% don’t think we are.

So why all this hyped-up bubble talk? Because Pandora Media, which is unprofitable, went public this week and did okay (Of course, Pandora’s shares yesterday fell below their offer price so maybe some people are worried). Pandora’s IPO followed the rousing debut from LinkedIn, which rocketed 109% in its first day. Fusion-io and Yandex (the Russian Facebook) also did well in their market debuts. Groupon is expected to go public soon (despite its losses) and could have a $25 billion valuation.


Pandora IPO Surges 9%, VC Stakes Worth $1.84 Bln–UPDATED

By Luisa Beltran — 5 years ago

Pandora Media went public today and shares of the online music service initially popped more than 60% before coming back down to earth.

Yesterday, Pandora sold 14.7 million shares at $16 each, above its $10 to $12 price range. Morgan Stanley is lead bookrunner on the deal. Other underwriters include JP Morgan, Citi, William Blair & Co., Stifel Nicolaus Weisel and Wells Fargo Securities. The underwriters have the option to buy an additional 2.2 million shares.


Music to Pandora’s Ears: IPO Prices Above Range, Raises $235M

By Reuters News — 5 years ago

(Reuters) – Online radio company Pandora Media (NYSE: P) priced shares in its initial public offering above an already raised range on Tuesday, the latest company to take advantage of red-hot valuations for Internet companies.

The venture-backed company priced its shares at $16 each, according to a source familiar with the deal. The company raised $235 million based on 14.7 million shares it planned to sell, according to a government filing.

Late last week, Pandora increased its price target range to


Pandora IPO to Price Later Today, Offering Generating Huge Demand–UPDATED

By Luisa Beltran — 5 years ago

Pandora is expected to price its IPO later today.

Oakland, Calif.-based Pandora, which provides a Web radio service, will likely begin trading Wednesday on the NYSE, and is expected to trade under the symbol “P,” an unexpected move because only market bellwethers tend to use single-letter ticker symbols.

John Fitzgibbon, publisher of IPO, says Pandora is generating huge demand, despite the fact that so many have condemned the company. The deal is 10 times oversubscribed, he says…


It Can Float Now… But Will it Fly Later?

By Jonathan Marino — 5 years ago

Internet companies are pushing smaller portions of their equity onto public markets at a volatile time and still seeing stock values increase almost instantaneously. For now, the practice is helping tack bigger price tags onto VCs’ assets, but if and when a major market disruption occurs, these newly-listed darlings may later see secondary offering attempts flounder.

Low-float IPOs are all the rage right now….


Analysis: Soaring IPOs Raise Bubble Concerns

By Reuters News — 5 years ago

(Reuters) – The frothy market for Internet IPOs is raising the specter of a bubble, underscoring how little has changed despite lawsuits and investigations in the wake of the 1990s dot-com craze. In the past five weeks, investors clamoring for newly public Internet companies have driven up shares of career networking site LinkedIn Corp and […]


New Feature! Most Popular Links Shared by VCs on Twitter

By Lawrence Aragon — 5 years ago

We’re trying out a new service run by Tweetminster that tracks content shared on Twitter by experts in various fields. In our case those experts are focused primarily on venture capital, technology and entrepreneurship. Long term, we hope to track content shared by private equity pros, but there just aren’t that many PE experts on Twitter at this moment.

We’re not making the Tweetminster service live just yet. We want to give the company’s algorithm more time to identify experts and analyze their tweets to identify key trends.

If you’d like to check out the service and share your feedback with us, please let me know and I will shoot you a password. I’m at [email protected] or you can DM on Twitter @laragon.

In the meantime, here are the top 5 most popular links being shared by our experts right now. Let us know what you think.

1. Spark, Lightbank And Yuri Milner Get In On OnSwipe’s $5M ‘Series Awesome’ (TechCrunch)

2. Slideshow: Top 10 Winners in pre-IPO Cash-Out at Groupon (peHUB)

3. Windows 8: The Beginning of the End of Windows (MobileOpportunity blog)

4. Let’s Not Get Too Cocky About the Bubble (TechCrunch)

5. Pandora Sets IPO Terms; VC Shares Are Potentially Worth Over $950M (peHUB)


Pandora Sets IPO Terms; VC Shares Are Potentially Worth Over $950M

By Reuters News — 5 years ago

(Reuters) – Online radio company Pandora Media Inc. filed terms for $109.5 million IPO on Thursday, as it moves ahead with an offering that could tap into the recent investor enthusiasm for Internet stocks.

The company and its owners will sell 13.68 million shares at $7 to $9 apiece, according to an amended filing with the U.S. Securities and Exchange Commission. Pandora will sell 5 million of the shares.

At the mid-point of the proposed range, the offering would fetch $109.4 million, more than the $100 million the company had used as a preliminary amount in its first filing in February.

Pandora has raised about $65 million in venture capital since its founding in 2000, according to Thomson Reuters (publisher of peHUB). The Hearst Corp. and five VC firms now own 72% of the


What Cult of the Founder CEO?

By Joanna Glasner — 5 years ago

Create your free online surveys with SurveyMonkey, the world’s leading questionnaire tool.

Virtually every time VCs talk about how they identify groundbreaking startups, they mention the formative role of a powerful founder-CEO. And looking at the history of famously successful startups of the last several decades — from Apple to Microsoft to Oracle to Facebook — it seems clear they have a point.

Yet looking at the recent spate of IPO filings from high-profile venture-funded companies like Pandora, LinkedIn and Homeaway, the trend actually seems to be one of smaller ownership stakes for founders and, in some cases, reduced leadership roles. Overall, it seems like VC stakes are bigger and founders have already parted with the bulk of their holdings, either through secondary transactions or the dilutive effects of multiple funding rounds.