Morning Report: While Delivery Hero’s IPO is doing pretty ok in Europe, two American IPOs disappoint.
Welcome to liquidity low-tide.
Shares of Blue Apron, the popular meal-kit company which went public yesterday after dramatically lowering its IPO price, descended beneath its reduced price in regular trading this morning. After pricing at $10, and closing its first day at $10.01, shares of Blue Apron are now worth just $9.79.
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And after a last-minute delay, and price reduction, Tintri went public this morning. Off its reduced price point, shares in the Cloud-ish Cloud-y Cloud Cloud company are up 4.7 percent to $7.33, after pricing at $7. Tintri originally aimed to debut between $10.50 and $12.50. That range was later lowered to $7 to $8, with $7 being the final choice.
Here’s the Tintri chart:
Both Blue Apron and Tintri are posting early trading sessions remarkably close to their IPO price. That’s good and bad. Good in that the newly-public companies likely priced their IPOs near their potential max, raising the most money possible for the firms. And bad in that not posting a decent bump on your first day — something many companies and their ensuing ranks of temporary banking friends engineer — leads to negative coverage, and, likely, internal disappointment.
To the second point, it becomes doubly true when your company goes public at a discount to your last private valuation. Like, say, both Tintri and Blue Apron just did.
(As a quick refresher, Tintri’s last listed valuation was $1.25 billion, according to Crunchbase. It’s worth a few hundred million today, a fraction of that sum. And Blue Apron went public worth around $1.9 billion, several hundred million under its last private valuation of $2.135 billion.)
Yes, two unicorns went public. But their pricing shows the continuing crash of private valuations and public sentiment. And if that’s the case at all-time market highs, what the hell happens when the public markets correct?
From the Crunchbase Daily:
Delivery Hero launches IPO
- Delivery Hero’s valuation topped $5 billion after the food delivery service went public on the Frankfurt Stock Exchange. The Berlin-based company, which operates in over 40 countries, previously raised $1.75 billion from venture and private equity investors.
Upfront raises $400M for VC fund
- Los Angeles-based venture capital firm Upfront Ventures has raised $400 million for its sixth fund, which will focus primarily on early stage technology companies. The firm raised $280 million for its last fund in 2014. The new fund launch comes amid a booming period for the Los Angeles startup scene, which is seeing a rise in investment and big exits.
East Bay cities raking in venture funding
- Companies in the San Francisco Bay Area raise so much venture capital that even smaller and lesser-known cities in the region outrank major metropolises when it comes to securing investment. Crunchbase News takes a look at some of the cities in the East Bay region that are raking in funding.
Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.