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A tech IPO in time for Valentine’s Day

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Stock investors seem to think they’ve found a real match with dating app company Bumble.

The company behind Badoo and the Bumble app raised $ 2.2 billion in an offering of 50 million shares priced at $ 43, more shares sold for a higher price than expected.

Last valued at around $ 3 billion when Blackstone acquired the company in 2019, it is now valued at around $ 8.2 billion.

As we all wait for the inevitable fury around the IPO’s pop or radio silence if stocks fall on day one of trading, here’s the skinny on Bumble’s financial position:

  • The dating app that lets women take the first step saw revenue of approximately $ 416.6 million for the first nine months of 2020, outperforming the company’s performance in the same period a year earlier to $ 362.6 million. As revenue grew nearly 15%, Bumble’s losses also exceeded profits, losing $ 116.7 million in those nine months of 2020, compared to a profit of $ 68.6 million at the same period a year earlier.
  • The company still has a long way to go before it can compete with its bigger competitor Tinder. The dating app owned by Match group should again record income of over a billion dollars for all of 2020.
  • Bumble said it had 42 million monthly active users in the third quarter of 2020. Some 2.4 million of those users were paying in the nine months ending 2020.
  • Led by CEO Whitney Wolfe Herd, Bumble really (really) markets itself to investors as a company that has women as its primary demographic in its prospectus, even though the company’s other dating app, Badoo, has no restriction on initiators. the first movement. “We believe there is a significant opportunity to build on our foundation as a women-centric technology platform to become a leading global female brand,” the prospectus states.
  • The IPO comes after a difficult 2019 for the company, which was accused of a misogynistic workplace in a Forbes survey. Company co-founder and then CEO Andrey Andreev stepped down that year, making way for Wolfe Herd. A British law firm hired by the company to investigate the Forbes allegations later largely denied them, though this suggested that the company facilitate reporting of misconduct and improve diversity and inclusion training.

WALL STREET ANALYST LAUNCHES VC FUND: Rich Greenfield is known to be one of Wall Street’s most outspoken analysts – in 2015, media, telecommunications, and tech-focused investors called for the removal of Don Mattrick, CEO of Zynga.

Now he’s managing a new $ 75 million venture capital fund. LightShed Ventures, the boutique research firm co-founded by Greenfield after leaving BTIG in 2019, has announced its very first fund focused on early stage investments in telecommunications, media and technology.

While the fund itself has yet to officially acquire a business, Greenfield has already invested in companies such as Wondery, the podcast startup recently acquired by Amazon. Some of these offerings should be included in the LightShed portfolio.

The hope is that investments in private companies will give Lightshed an edge in its research into public companies in the same sectors. Meanwhile, its links to government procurement would also be helpful in setting up start-ups.

But the setup could potentially cause conflicts of interest if LightShed sells research that pertains to its own portfolio companies. But Greenfield says LightShed will sell its shares immediately if an investment goes public or is bought by a public company. LightShed also does not plan to own shares in any state-owned companies it covers.

Greenfield co-founders include former BTIG colleagues Walter Piecyk and Brandon Ross (whom you may remember of this incident) and Jamie Roberts Seltzer, formerly of Waverley Capital.

FINAL CALLS: Don’t forget to submit your responses to the annual Semaphore and Term Sheet confidence survey of private equity and venture capital professionals. The survey ends at Friday at midnight. Here’s a snapshot: As a group, you are surprisingly divided over the future of Big Tech. Take survey here.

Lucinda Shen
Twitter: @shenlucinda

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