Liquidity Public Markets

Morning Report: Redfin’s IPO Set To Test Public Waters After Blue Apron, Tintri Disappoint

Morning Report: Welcome back to IPO watch. It’s go time for Redfin.

Tomorrow, Redfin will start publicly trading on the Nasdaq, according to the exchange’s own IPO calendar.

The Seattle-based firm is currently tipped to price between $12 and $14 per share. Redfin’s debut will mark the first notable, US-listed technology IPO since Tintri and Blue Apron both debuted at down-valuations. Blue Apron has since fallen by more than 20 percent since. Tintri is roughly flat.

Redfin, therefore, is going public into choppier waters than some of the preceding 2017 cohort. What impact prior IPO disappointments will have on its performance remains to be seen.

A Redfin Refresh

While private, Redfin raised $167.8 million from investors. The firm brought in more than a quarter billion in revenue last year, posting a negative operating margin (on a GAAP basis, meaning inclusive of all costs) of less than 10 percent.

(For a deeper dive into the company’s numbers, head here; we’ll spare you the full number-run this morning.)

Redfin’s IPO is notable for its seasonally-variable revenue and potential valuation. According to SeekingAlpha, the firm will target a billion-dollar-plus valuation in its IPO, making it a (potentially) impending public unicorn.

But what matters most for these pages is the chance for a win. That is, if Redfin does well in its debut, other firms could be coaxed off the bench. At that point, we’d have so many more IPOs to write about.

And that would not be burdensome.

From the Crunchbase Daily:

WeWork secures $500M for China growth

  • WeWork, the co-working giant, announced that it has raised $500 million from SoftBank and Hony Capital to fuel its growth in China. To carry out that plan, the company created a new business entity called WeWork China.

Slack raising $250M at $5B valuation

  • Slack, the popular messaging platform for group work, is raising $250 million at a $5 billion valuation, according to media reports. Backers for the round include Accel, SoftBank, and other existing investors.

HR analytics gains traction

  • Venture investors are increasingly putting their money to work in workplace analytics. A Crunchbase News analysis finds that startups in the space have been scaling up and rolling out new offerings aimed at helping HR departments quantify decisions around recruiting, hiring, and maintaining policy in the workplace. ((For more stories, follow @crunchbasenews on Twitter and check us out on Facebook.)

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