Cloud computing company DigitalOcean filed for a $100 million IPO on Thursday, revealing growing revenue and steady losses.

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DigitalOcean’s platform offers tools for companies, particularly developers, startups, and small and medium-sized businesses. The company, which is based in New York, last raised a $50 million Series C led by Access Industries in May 2020. Investors in DigitalOcean include Fortress Investment Group and Andreessen Horowitz.

Tech IPOs (and special purpose acquisition companies) are hot right now, and the public market rush of 2021 is just beginning. Among the largest beneficiaries of DigitalOcean’s IPO will be Andreessen Horowitz, IA Ventures, and AI Droplet Holdings LLC.

So, let’s take a look at DigitalOcean’s numbers.

DigitalOcean reported nearly $318.4 million in revenue in 2020, up almost 25 percent from the $254.8 million in revenue generated by the company in 2019. Its losses grew relatively little between 2019 and 2020, going from around $40.4 million in 2019 to about $43.6 million in 2020.

The company has more than 570,000 customers across 185 countries, according to its S-1 document. RouteTrust, Cloudways and Centra are listed among its customers. DigitalOcean has a special focus on developers, startups and SMBs, which the company lists as a risk factor in the filing.

“Our core customer base consists of individual developers, early stage start-ups and small-to-medium size businesses, many of which plan for high growth. We expect that our path to growth will, in part, rely on scaling our platform to meet the needs of such customers as they increase usage of our platform,” the company wrote. “Accordingly, if such customers fail to grow as expected, then our path to growth may be adversely affected. In addition, our inability to offer both suitable services to support their businesses at scale and suitable and appropriately priced services for the initial state of their business, and could adversely affect our business, financial condition and results of operations.”

DigitalOcean’s IPO filing comes around the same time as Coinbase’s public S-1 registration statement and after a handful of other S-1 filings this year, including Oscar Health. While tech IPOs have been well-received by the public markets upon their trading debut, they’re currently being outpaced by IPOs of special purpose acquisition companies, or SPACs. Tech and tech-adjacent companies including Rover and Lucid Motors have also announced their intent to go public by merging with SPACs.

Morgan Stanley, Goldman Sachs and J.P. Morgan are among the underwriters for DigitalOcean’s IPO. The company plans to list on the New York Stock Exchange under the ticker DOCN.

Illustration: Dom Guzman

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So, let’s take a look at DigitalOcean’s numbers.

Source: https://news.crunchbase.com/news/digitalocean-files-for-ipo-among-a-sea-of-spacs/

Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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Brandwatch acquired by Cision for $450M

Brighton, UK-based Brandwatch, a provider of online consumer intelligence, with a focus on social media, announced that it will be acquired by Cision, a provider of social media management and marketing tools.

Under terms of the agreement, Chicago-based Cision, a publicly traded company, will pay $450 million for Brandwatch, with the deal expected to close in the second quarter of this year.

Founded in 2005, Brandwatch previously raised at least $64.7 million in known venture funding, per Crunchbase data.

— Joanna Glasner

Bessemer closes on $3.3B across two new funds

Bessemer Venture Partners is the latest longstanding VC firm to close on massive new funds.

The firm announced that it has raised $3.3 billion across two new funds. The first, BVP XI, is a flagship fund that will focus on early-stage companies spanning across enterprise, consumer, healthcare, and frontier technologies. The second, its $825 million Century II fund, is designed for growth-stage companies.

Founded 35 years ago, Bessemer today has a leadership team of 21 partners and over 45 investors, advisors and platform operators, with a presence in San Francisco, Silicon Valley, Seattle, Boston, New York, London, Tel Aviv, Bangalore, and Beijing.

— Joanna Glasner

Tech news

Airbnb posts steep loss in first post-IPO earnings report: Airbnb reported a $3.89 billion loss in first quarterly report since its IPO. The company attributed much of the loss to costs stemming from its public offering. Revenue, meanwhile, came in at $859 million for the fourth quarter, down 22 percent year-over-year as the pandemic disrupted demand for travel and accommodations.

— Joanna Glasner

Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

Founded in 2005, Brandwatch previously raised at least $64.7 million in known venture funding, per Crunchbase data.

Source: https://news.crunchbase.com/news/briefing-2-26-21/

Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

Subscribe to the Crunchbase Daily

Roblox direct listing debut planned for March 10

Roblox, the online game and game creation platform, is back on track for a public market debut, after delaying plans for its public offering last year. The company is expected to make is market debut March 10.

San Mateo, California-based Roblox had originally planned for a traditional public offering, but has opted instead to go public via a direct listing. The decision was motivated in part by concerns that giant first-day pops by companies like Airbnb and DoorDash made it hard to settle on the appropriate initial offering price for shares, the Wall Street Journal reports.

Founded in 2004, Roblox has previously raised at least $856 million in known private funding, per Crunchbase data. Its last private valuation, as of January was reportedly around $29.5 billion.

— Joanna Glasner

Joby Aviation to go public via SPAC

Joby Aviation, a Santa Cruz, California-based company developing electric aircraft, announced plans to go public on the New York Stock Exchange through a merger with a SPAC called Reinvent Technology Partners.

The deal includes $910 million of fully committed funding from multiple institutional investors as well as Uber, a strategic backer. Under terms of the agreement, venture capitalist Reid Hoffman, co-founder of LinkedIn and a lead director of Reinvent Technology Partners, will join Joby’s board of directors.

Founded in 2009, Joby has previously raised at least $796 million in known funding, per Crunchbase data.

— Joanna Glasner

Funding Rounds

Truvian raises over $105M for blood testing system: San Diego-based Truvian Sciences announced the close of more than $105 million in an oversubscribed Series C financing round led by TYH Ventures, Glen Tullman of 7wireVentures, and Wittington Ventures. The funds will go toward development of Truvian’s automated benchtop blood testing system.

— Joanna Glasner

Illustration: Dom Guzman

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

Source: https://news.crunchbase.com/news/briefing-2-24-21/