Jonas Grankvist, LLM/MBA

Swedish expat in SF. Investment Professional SharesPost 100 Fund (PRIVX). Thiel Foundation's 20Under20 Mentor. Ex Attorney/Banker. LLM/MBA. Telemark skier
Recent Tweets @jgrankvist

Each month, I will spotlight SharesPost 100 companies that have had recent financing, acquisition, exit/IPO or other interesting news occur.

This month, three SharesPost 100 companies raised major new rounds of financing in the Enterprise, and Network/Hosting verticals and four companies across several sectors filed to go public.

image

San Francisco-based enterprise healthcare cloud company Castlight Health, filed for a $100 million IPO on February 10. Castlight’s application lets companies provide employees with personalized shopping tools for healthcare benefits. The company will list on the New York Stock Exchange under the symbol “CSLT,” with Goldman Sachs and Morgan Stanley serving as lead underwriters. The company reports a $62 million net loss on $13 million revenue for 2013, compared to $35 million net loss on $4 million revenue for 2012. Castlight Health has raised approximately $180 million, most recently $100 million in April of 2012, from investors including Fidelity Investment, The Welcome Trust, Oak Investment Partners, Maverick Capital and Venrock. If Castlight prices at 2x the last round of financing, this could be a $1 billion IPO.

Castlight Health’s S-1 filing states that, according to the Centers for Medicare and Medicaid Services, U.S. health care spending is forecasted to total approximately $3 trillion in 2014, with $620 billion of this amount to be paid by U.S. employers. Over the last two decades, employers have taken various steps to attempt to mitigate this growing burden, including self-insuring and increasingly shifting costs to employees. Without proper tools, employees are forced to make decisions based on limited information and little understanding of options that can ultimately result in lower quality and higher costs. According to the company, Castlight established the health care transparency market to address this need. 

image

Aerohive Networks, the Sunnyvale, Calif. -based provider of a leading cloud-managed mobile networking platform, filed its IPO documents on February 13. Aerohive is looking to raise $75 million and plans to trade on the New York Stock Exchange under ticker symbol “HIVE” with Goldman Sachs and BofA Merrill Lynch serving as lead underwriters. The company reports a $33 million net loss on $98 million revenue for 2013, compared to $25 million net loss on $67 million revenue for 2012. Aerohive has raised around $120 million in VC funding, most recently a Series E round in June of last year from investors including New Enterprise Associates, Lightspeed Venture Partners, Northern Light Venture Capital and Kleiner Perkins Caufield & Buyers. VC Experts reports that the Series E round was done at approximately a $455 million valuation.

Trends in enterprise mobility, including the proliferation of mobile devices, increased bring your own device (BYOD), utilization, enterprise adoption of cloud and the adoption of mobile-first applications are significantly increasing the importance of wireless inside the enterprise. According to Dell’Oro Group, a market research firm, the Enterprise WLAN market - which includes enterprise-class access points, controllers and access management software - is projected to grow more than 50% from 2012 to $12 billion by 2017.

image

King Digital Entertainment, the maker of the Candy Crush Saga game, has filed for a $500 million IPO. King will list on the New York Stock Exchange under ticker symbol “KING,” with J.P. Morgan, Credit Suisse and BofA Merrill Lynch serving as underwriters. The company reports 10x revenue growth in 2013, reaching $1.9 billion of top line revenue, compared to $165 million for 2012. Profits grew even stronger at a 71x multiple, from about $8 million in 2012 to $568 million in 2013. However, fourth-quarter revenue of $602 million was down 3% from the third quarter in 2013. King has raised less than $45 million in the past from Apax Partners (48% pre-IPO stake) and Index Ventures (8%).

According to the company, King has been developing and publishing online casual games since 2003. As the market has shifted materially to mobile and social platforms, King has embraced and adopted to new distribution channels such as the Apple App Store, Google Play Store and Facebook. In its filing, King said that today, a majority of the users access the content through a mobile device, a trend that continues to grow: in December 2013, an average of 128 million daily active users (DAUs) played their games more than 1.2 billion times per day. The company generates revenue primarily through sales of virtual items, where users pay for items and features such as extra lives, boosters and additional game content.

image

Lanover, Md.- based online learning platform2Ufiled for a $100 million IPO on February 21. The company’s solutions enable colleges and universities to deliver their education to students anywhere, while providing the operating infrastructure they need to attract, enroll, educate, support and graduate their students. 2U plans to list on the NASDAQ Global Market under the symbol “TWOU” with Goldman Sachs and Credit Suisse serving as lead underwriters. 2U reports a $28 million net loss on $83 million revenue for 2013, compared to a $23 million net loss on $56 million revenue for 2012. Most recently, 2U raised a $31 million Series D round at the end of last year from investors including Redpoint Ventures, Highlands Capital Partners and Bessemer Venture Partners. The company has raised nearly $100 million in funding.

According to the company’s filing, the market for online postsecondary education has grown more rapidly than the overall postsecondary market in the past years, driven by the increased acceptance of online programs among students, academic institutions and employers, and the greater flexibility and convenience of many online programs. In the United States alone, total revenue for all degree-granting postsecondary institutions was over $550 billion for the 2010-2011 academic year, according to a May 2013 report by the U.S. National Center for Education Statistics.

image

Domo, an American Fork, Utah, -based executive management platform, announced on February 6 that it closed a $125 million Series C financing. TPG Growth led the round, with participation from Fidelity Investments, T. Rowe Price, Salesforce.com and others. Previous investors, GGV Capital, Greylock Partners, Institutional Venture Partners and Mercato Partners participated as well. According to CNNMoney, the round was done at an $825 million pre-money valuation, up from an approximately $300 million valuation in Domo’s Series B round in March 2013.

The market for business intelligence and analytics platforms is one of the fastest growing software markets and will remain so for the foreseeable future, according to the research firm Gartner, with a predicted growth at 7% CAGR through 2017. The company revealed in a press release that their annual growth far exceeded 100% in 2013 and that they are experiencing sequential quarterly sales growth between 25-40% from roughly 500 customers.

image

Dropbox, a San Francisco-based cloud storage and sharing company, is in the process of raising approximately $450 million in a new round of financing, according to a regulatory filing on February 19. So far, $325 million has been raised, as stated in the Form D filing. VC Experts estimates that the Series C round was done at a $9.4 billion valuation, up from a $4.3 billion valuation as of October 2011. According to Wall Street Journal, new investors include BlackRock, T. Rowe Price, and Morgan Stanley. Dropbox has yet to confirm the new round.

Gartner predicts continued strong growth across all public cloud services market segments with end-user spending reaching $132 billion worldwide in 2013, up 18% from 2012, to almost $250 billion by 2017. Dropbox has more than 200 million users, up from 175 million in July, and serves 4 million businesses and 97% of the Fortune 500, according to the company.image

Tintri, a producer of storage appliances for the virtual machine market, announced on February 13 that it secured $75 million in an oversubscribed Series E funding round led by Insight Venture Partners, with participating from existing investors Lightspeed Venture Partners, Menlo Ventures and New Enterprise Associates. The round was done at a $600 million valuation, according to Business Insider, which is up from a $190 million valuation in July 2012 when the company raised $25 million.

Virtualization has transitioned into a mainstream technology in today’s datacenters and is widely used to increase hardware utilization as well as lower server operational costs. According to IDC, this market will continue to grow over the next few years, driven in part by the consumerization of IT and the continued explosion of the mobile device market.

Tintri announced in January of 2014 that the company more than doubled its enterprise customer base worldwide in the previous year, reaching 100,000 virtual machines in full production at hundreds of global enterprises. According to the company’s press release, close to 70% of Tintri’s customers made repeat purchases and sales grew 115% year-over-year.