Amplitude CEO’s ode to scrutiny ahead of going public

To the chagrin of many public market investors, startups born over the past decade often resisted the IPO route because: a) private markets were flush with cash, and b) submitting yourself to the unforgiving scrutiny of short sellers, naysayers, and analysts seemed awfully unappetizing. 

But since the start of the pandemic, that unofficial party line of staying private longer seems to have, at the very least, softened.

Perhaps most famously, big data company Palantir went public roughly a year ago after spending some 18 years of its life as a private business (and many of those as the archetype for Silicon Valley’s preference for staying out of public markets). Meanwhile, the average age of a company going public in 2020, not even including SPAC transactions, actually dipped. Dipped! To nine years old! After spending the last 11 years in the double digits! That’s based on data from University of Florida Professor Jay Ritter (whose data is also deserving of an exclamation point!).

At roughly nine years old, data analytics company Amplitude, in theory, could have stayed private longer. But the company decided to go public on Tuesday via a direct listing—a method in which bankers typically take more of a back seat in the pricing process. This made their CEO person the perfect person to ask: Why is the company going public?

“It’s just a higher execution bar. There are higher expectations, and I kind of want that for the Amplitude team because we’re ready to exit and we’re ready to go into the big leagues,” says CEO Spenser Skates. “It’s the next stage in leadership. It’s hampering your company by not living up to the standards [of public scrutiny]… One of the big things being part of the public listing process is that the Securities and Exchange Commission scrutinizes the sh*t out of you.”

Skates pointed to Facebook CEO Mark Zuckerberg, who in 2013 went from avoiding the public markets to saying that the IPO process made the company stronger. And, it seems, even a decade later, the usual lures for going public still have not gone away.

“Being public has a number of advantages. One, you are much higher profile so that in a crowded space, you can stand out much more easily,” he says. “Having a liquid stock also allows us to be a lot more strategic—so we can acquire companies and make big moves that you just can’t when you’re private.”

Of course, this also comes as the public markets have fallen in love with tech companies in general, bolstering the value of companies that help businesses work online—which raises the question as for how long startupland’s positive feelings for public markets will last. But for now, the pipeline is burgeoning. Eyeglasses retailer Warby Parker is set to test market appetite tomorrow, while much-watched payments company Stripe is reportedly discussing an IPO in 2022.

Last valued at about $4 billion on private markets, Amplitude is backed by Benchmark, Battery Ventures, and Institutional Venture Partners.

BRING ON THE IMPACT: Know a startup that is doing well by doing good? A business that is using the creative tools of business to help the planet and tackle society’s unmet needs—and earning a profit while doing so? Nominate the startup for this year’s Fortune’s Impact 20 list using this Google form. The deadline for submissions is Sept. 30.

Lucinda Shen
Twitter: @shenlucinda
Email: lucinda.shen@fortune.com

Jessica Mathews compiled the IPO and SPAC sections of this newsletter.

VENTURE DEALS

- Gem, a San Francisco-based recruiting platform, has raised $100M in Series C funding at a $1.2 billion valuation. The round was led by ICONIQ with participation from Accel, Greylock, Sapphire Ventures, and Meritech Capital.

- Octopus Energy Group, a London-based renewable energy company, raised $600 million from Generation Investment Management and $55 million from Origin Energy, valuing it at up to $4.6 billion.

- Coalition, a San Francisco-based cyber insurance and security company, raised $205 million valuing it over $3.5 billion. Durable Capital, T. Rowe Price Associates, and Whale Rock Capital led the round.

- Multiverse, a U.K.-based apprenticeship startup, raised $130 million in Series C funding. D1 Capital Partners and BOND led the round.

- Wayspring, a Nashville, Tenn.-based substance use disorder-focused company, raised $75 million from Valtruis, Centene Corporation, CareSource, and HLM Venture Partners.

- Membersy, an Austin-based digital health dentistry company, raised $66 million from Spectrum Equity. 

- Stellar Health, a New York City-based healthcare tech company, raised $60 million in Series B funding. General Atlantic led the round and was joined by investors including Point72 Ventures and Primary Venture Partners.

- Astera Labs, a Santa Clara, Calif.-based fabless semiconductor company, raised $50 million in Series C funding valuing it at $950 million. Fidelity Management and Research led the round and was joined by investors including Atreides Management and Valor Equity Partners.

- Syndio, a Seattle-based workplace analytics company focused on equal pay, raised $50 million in Series C funding. Emerson Collective and Bessemer Venture Partners led the round and were joined by investors including Voyager Capital.

- Omaha National Group, an Omaha-based workers compensation insurance and payroll services company, raised $45 million in Series B funding. Accomplice led the round.

- Acceldata, a San Jose, Calif.-based data monitoring company, raised $35 million. Insight Partners  led the round and was joined by investors including March Capital, Lightspeed, Sorenson Ventures, and Emergent Ventures. 

- Issuu, a Palo Alto, Calif.-based digital content publishing company, raised $31 million from Capital IP. 

- Kytopen, a Cambridge, Mass.-based biotech, raised $30 million in Series A funding. Northpond Ventures led the round.

- New Age Meats, a Berkeley, Calif.-based cultured meat company, raised $25 million in Series A funding. Hanwha Solutions led the round and was joined by investors including SOSV’s IndieBio, TechU Ventures, ff VC, and Siddhi Capital.

- SenseOn, a London-based cybersecurity business, raised $20 million in Series A funding. Eight Roads Ventures led the round and was joined by investors including MMC Ventures, Crane Venture Partners, and Winton Ventures Limited.

- Malbek, a Somerset, N.J.-based contract lifecycle management platform, raised $15.3 million in Series A funding. Noro-Moseley Partners led the round.

- Phiar Technologies, a Redwood City, Calif.-based maker of an augmented reality system for driving navigation, raised $12 million in Series A funding. State Farm Ventures led the round and was joined by investors including Cambridge Mobile Telematics and Telenav, and previous investors Norwest Venture Partners, The Venture Reality Fund, and GFR Fund.

- Thankful, a Venice, Calif.-based A.I. platform for customer service, raised $12 Million in Series A funding. Alpha Edison led the round and was joined by investors including Bonfire, Ten-One-Ten, Greycroft, Omega, and Miramar.

- Burro, a Philadelphia-based agriculture autonomy company, raised $10.9 million in Series A. funding. S2G Ventures and Toyota Ventures led the round and was joined by investors including F-Prime Capital and the Cibus Enterprise Fund.

- Appwrite, an Israel-based open-source platform for developers, raised $10 million in two seed funding rounds. Ibex Investors and Seed Camp led one round while Bessemer Venture Partners and Flybridge Capital Partners led the other.

- Ramen VR, a San Francisco-based maker of an online massive multiplayer VR game, raised $10 million in Series A funding. Makers Fund, Anthos Capital, and Dune Ventures led the round.

- Iris.TV, a Los Angeles-based video platform, raised an additional $5 million in funding. ABS Capital Partners led the round.

- TailorMed Medical, a New York City-based healthcare fintech, raised an additional $5 million. Investors included BrightEdge, OSF Ventures, and the Citi Impact Fund.

- EdSights, a New York City-based education-focused conversational A.I. company, raised $5 million in Series A funding. Album VC led the round and was joined by investors including Lakehouse, Good Friends, Chegg CEO Dan Rosensweig, and GSV Ventures’ Deborah Quazzo.

- Bubblehouse, a New York City-based NFT marketplace, raised $4 million in pre-seed funding. Third Kind VC led the round and was joined by investors including SV Angel, Watertower Ventures, and Soma Capital.

- Dataships, a Marin, Calif.-based platform for data privacy compliance, raised $3 million in seed funding. The Urban Innovation Fund and Lavrock Ventures co-led the round.

- Omneky, a San Francisco-based A.I. company for creating personalized ads, raised $2.5 million in seed funding. Village Global and Hyphen Capital invested.

- Builders Patch, a New York City-based construction financing startup, raised $2.3 million in seed funding. The Urban Innovation Fund led the round.

- Sanome, a European health startup, raised £2 million. Heal Capital led the round.

PRIVATE EQUITY

- Warburg Pincus invested $130 million in Conexiom, a provider of sales order and invoice automation solutions. Luminate Capital retains a majority stake.

- Stratus, backed by Vestar Capital Partners, acquired MLE Brand Services, a Chicago-based brand management company, valuing the combined business at over $325 million.

- Atlantic Street Capital invested in Prestige Medical Imaging, a Newburgh, N.Y.-based radiology service and solutions provider in the Eastern United States. Financial terms weren't disclosed.

- Alvarez & Marsal Capital Partners acquired Worldwise, a Novato, Calif.-based pet supplies company. Financial terms weren't disclosed.

- EQT invested in EC-Council, a cybersecurity training company. Financial terms weren't disclosed.

- Housatonic Partners, invested in Veridic Solutions, a  Durant, Ok.-based provider of IT services. Financial terms weren't disclosed.

- TA Associates agreed to invest in Caprock, a multi-family office. Financial terms of the transaction were not disclosed.

- Mercer Global Advisors, backed by Oak Hill Capital and Genstar Capital, acquired Miller Advisors, a Kirkland, Wash.-based wealth management firm. Financial terms weren't disclosed.

EXITS

- Blackstone will sell The Cosmopolitan of Las Vegas resort and casino for $5.65 billion. MGM Resorts will buy the operations for about $1.63 billion.

- Amulet Capital Partners acquired Remedy Health Media, a New York City-based network of health information websites, from Topspin Consumer Partners. Financial terms weren't disclosed.

- Kohlberg & Company acquired Ob Hospitalist Group, a Greenville, S.C.-based provider of obstetric hospitalist programs, from Gryphon Investors. Financial terms weren't disclosed.

- Lindsay Goldberg acquired Summit Interconnect, an Anaheim, Calif.-based circuit board maker,  from HCI Equity Partners. Financial terms weren't disclosed.

OTHERS

- Endeavor acquired OpenBet, a London-based betting software maker, from Scientific Games. The deal is valued at about $1.2 billion.

- Anduril Industries acquired Copious Imaging, a Lexington, Mass.-based maker of sensing technology. Financial terms weren't disclosed.

- Creative Artists Agency agreed to acquire ICM Partners, a Los Angeles-based entertainment and sports agency. Financial terms weren't disclosed.

- Riot Games acquired the team from Kanga, a New York City-based maker of content and social wagering for esports franchises and streamers. Financial terms weren't disclosed.

IPO

-Olaplex Holdings, a Santa Barbara, Calif.-based hair care brand, now plans to raise up to $1.3 billion in an initial public offering of 67 million shares priced between $17 and $19 per share—it had previously planned to sell shares for up to $16. The company reported net sales of $99.6 million in 2020 and a net loss of $22.4 million. Advent International owns a majority stake in the company, and Mousse Partners back the firm.

-AutoStore, a Norwegian warehouse robotics company, plans to raise $315 million in a public listing in Oslo, per Bloomberg. An IPO could value the firm at $10 billion. Thomas H. Lee Partners, SoftBank Group, and EQT own the firm. 

-​​​​Winc, a Santa Monica, Calif.-based wine club membership company, filed for an initial public offering. The company posted $65 million in net revenue in 2020 and reported a $7 million net loss. Bessemer Venture Partners, Shining Capital, and Cool Japan Fund back the firm.

-Portillo’s, an Oak Brook, Ill.-based Chicago street food restaurant chain company, filed for an initial public offering. The company posted $455 million in revenue in 2020 and $12 million in net income. Berkshire Partners owns the firm.

-Fluence Energy, an Arlington, Va.-based battery energy storage technology company, filed for an initial public offering. The company posted $402 million in revenue in the 12 months ending in Sep. 2020 and it reported a net loss of $47 million over the same period. AES and Siemens own the firm.

-The Vita Coco Company, a New York City-based coconut water company, filed for an initial public offering. The company reported $311 million in net sales in 2020 and $33 million in net income. Verlinvest and Reignwood Group back the firm.

-P10, a Dallas, Texas-based multi-asset class private market solutions provider, filed for an initial public offering. The company reported $67 million in total revenue in 2020 and $24 million in net income. 

-Minerva Surgical, a Santa Clara, Calif.-based uterine healthcare medical technology company, filed for an initial public offering. The company reported revenue of $38 million in 2020 and a net loss of $18 million. New Enterprise Associates, Boston Scientific Corporation, and Versant Venture back the firm.

F+FS

- PSG, a Boston-based growth equity firm, closed PSG V with $4.5 billion.

- SeventySix Capital, a Conshohocken, Pa.-based venture capital firm, plans to raise $50 million for its second fund focused on sports-related tech.

PEOPLE

- J.P. Morgan Private Capital, the New York City-based private market investing arm of the bank, named Luke Sikora as a Partner of its Growth Equity Partners platform. He was previously at Vulcan Capital.

- Silversmith Capital Partners, a Boston-based growth equity firm, named Ned Kingsley as vice president. It also named Matthew Nash and Jamol Williams as senior associates.

- ClearSky, a venture capital firm, added Asif Giga as a director. He was previously of Ericsson Ventures.

- SoftBank Vision Fund’s Deep Nishar, its sole senior managing partner, will leave the firm at the end of the year.