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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SoFi to go public via SPAC
Online lender SoFi said Thursday it will enter the public markets through a merger with Social Capital Hedosophia Holdings Corp V, a special-purpose acquisition company led by billionaire Chamath Palihapitiya.
The deal, expected to close in the first quarter, gives San Francisco-based SoFi a post-money valuation of $8.65 billion and is expected to provide up to $2.4 billion in cash proceeds, the company said in a written statement.
SoFi has raised $2.5 billion in funding since it was founded in 2011, according to Crunchbase data. Its most recent venture capital round was a $500 million Series F in 2017 led by Silver Lake Partners. In 2019, it raised another half-billion-dollar round of private equity led by Qatar Investment Authority. At that time, the company was valued at $4.8 billion post-money.
The company said it posted more than $200 million in total net revenue in the third quarter of 2020 and estimates a net revenue of about $1 billion in 2021, representing 60 percent year-over-year growth.
Shares of Social Capital Hedosophia Holdings Corp V are currently trading on the New York Stock Exchange under the symbol IPOE. Following the announcement Thursday, the share price rose 57 percent in late afternoon trading.
Roblox raises $520M in advance of direct listing
San Mateo, California-based Roblox also announced that it plans to go public via a direct listing of its common stock.
In a prior filing Roblox reported $588.7 million in revenue for the first nine months of 2020, up 68 percent from $349.9 million during the same period in 2019. Losses also widened, hitting $205.9 million in the first nine months of 2020, up from $46.3 million in the same period a year earlier.
- Lacework lands $525M: Lacework, a provider of cloud security technology, announced that it has raised $525 million in a growth funding round led by Sutter Hill Ventures and Altimeter Capital. (Read more).
- Resident bags $130M to expand brick-and-mortar retail: Direct-to-consumer home furnishings brand Resident, the parent company of the Nectar and DreamCloud mattress brands, said it closed a $130 million investment led by Ion Crossover Partners and Nexus Capital Management.
- AbsoluteCARE inks $105M for primary care: AbsoluteCARE, a health care provider headquartered in Baltimore, received $105 million in funding from Kinderhook Industries.
- Kira Pharmaceuticals brings in $53.5M for drug discovery program: Kira Pharmaceuticals, a biotechnology company headquartered in Massachusetts and China, announced the first closing of an oversubscribed $53.5 million Series B+ financing, co-led by RA Capital and Vivo Capital, that will go toward a drug discovery platform targeting immune-mediated therapies.
- Carrum Health raises $40M for digital health marketplace: Carrum Health, a San Francisco-based digital health company connecting employers and employees to centers of excellence for planned health care procedures, said it closed $40 million in Series A funding led by Tiger Global Management.
- Air Protein bites into $32M to launch alternative meat: Air Protein, a Pleasanton, California-based startup producing meat made from elements of the air, announced a $32 million Series A round of fundraising led by ADM Ventures, Barclays and GV.
- Hello Ralphie brings in $1M for veterinary telemedicine: New York-based startup Hello Ralphie announced a $1 million seed round led by HearstLab and WPMC Fund to develop its platform connecting pet owners with licensed veterinarians through chat and video appointments.
- Hopin buys StreamYard for $250 million: Virtual events platform Hopin announced that it has acquired StreamYard, a provider of software for creating professional live streams, in a deal reportedly valued at around $250 million.
Illustration: Dom Guzman
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