Coinbase Raises $75M, Valued at $471M

Screenshot 2015-01-21 11.50.14

Coinbase, a secure hosted Bitcoin wallet that makes it easy for anyone to purchase and use Bitcoin, has raised $75M from DFJ Growth, with participation from existing investors, including Andreessen Horowitz, Union Square Ventures, and Ribbit Capital. According to the Company’s blog – “Three of the world’s most respected financial institutions – The New York Stock Exchange, a subsidiary of USAA, and BBVA (a large multinational bank) also invested in the round alongside personal investments from former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer. This marks the first time that financial institutions have made a major investment in a Bitcoin company.

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 View the Amended and Restated Certificate of Incorporation filed December 1, 2014.

SpaceX Authorizes $1B in New Shares

CRS-5 Dragon in Orbit

Space Exploration Technologies, Inc., filed an Amended and Restated Certificate of Incorporation on January 20, 2015 that authorized 13 million new shares of Series G at $77.46 per share. This allows for a potential $1B raise, and is 10X the share price of their last round at $7.50.

SpaceX Price Per Share With Valuation

Journalists Appreciate Accurate Data on Private Company Financings

Journalists, bloggers and various other media outlets often reach out to the team at VC Experts because of our innate ability to gather private company financing details, including share prices, stock splits, valuations, and other unique data often overlooked through other sources.

VC Experts Intelligence Database racked up more than 20,000 new private company regulatory filings in 2014 (*more than just Form D’s on file with the SEC). Because of our unique dataset we were mentioned in the media quite a few times. We have listed below some of the “media darlings” that drew the most attention.

During the year we also entered into a strategic partnership with ACE Portal, and our data is now available on S&P Capital IQ– you can see the press releases below. Our Founders, Joe Bartlett and Ross Barrett, played a big part in keeping the conversation going about the importance of accurate data and private company transactions, check out some of their video interviews with ACE Portal below.

2014 Private Company Press Mentions

DROPBOXLatest Dropbox funding round may have been
$450 million, nearly double earlier reports
– Forbes
WHATSAPPWhatsApp Was Valued At ~$1.5B In Final Round
Before Sale
– TechCrunch

Sequoia Capital’s faith in WhatsApp startup
results in $3 billion return
– San Jose Mercury News

SERVICEMAXServiceMax raises $71 million for field
service cloud software
– San Francisco Business
CLOUDERAMuch Of Intels $740M Cloudera Investment
Likely Went To Existing Shareholders
– TechCrunch

Cloudera agrees to raise $200 million,
valuation up to $1.84 billion
– San Francisco Business

HOUZZHome Deco Site Houzz Raises $150M At A $2.3B
Post-Money Valuation
– TechCrunch

Online Home Improvement Company Houzz
Looking to Raise At $2.3Billion Valuation
– Forbes

OPEN GARDENCould This App Create A Free, Secret Web?
– Forbes
BOXBox authorizes raising $150 million as IPO
market for cloud computing cools
– San Francisco Business
ZOCDOCZocDoc raising $152 million at $1.6 billion
– Fortune
SNAPCHATSnapchat Authorizes Mystery Share Sale
– Forbes
UBERUber raises $1.2 billion, putting its value
at $40 billion

Uber Might be Dealing with Problems but is
Now Worth $41 Billion
– Tech Times

Uber Confirms New $1.2B Funding Round At
$40B Valuation
– TechCrunch

Uber files to sell $1.8 billion of new stock – Fortune

Uber CEO Kalanick Likely A Billionaire After
$18.2 Billion Valuation
– Forbes

THUMBTACKThe List Killer: How Thumbtack Plans To Be
Your One-Stop Local Services Shop For

Plumbers, Chefs And Belly Dancers – Forbes

SQUARESquare raises $100 million at $6 billion
– Fortune

Square raises $100 million at $6 billion
– San Jose Mercury News

INSTACARTGrocery Delivery Startup Instacart Rings Up
$210 Million Investment
– Forbes
ENDER LABSRoom Scheduling Startup Raises $1.5 Million
From Google Ventures, Marc Benioff, Zetta Venture Partners

WEWORKWeWork raises $355M at nearly $5B valuation,
plans IPO
– VentureBeat
PALANTIRPalantir Aiming To Raise $400 Million In New
– Forbes

Palantir Raises $50 Million Of Reported $400
Million Round
– TechCrunch

JAWBONEJawbone’s Missing Christmas

Jawbone Makes Progress On Its $250 Million
Funding Round As Apple Watch Looms Over
– Forbes

Be sure to check out our Report Center for individual company reports and industry aggregate reports.

We also compiled a few lists from our Intelligence Database:

2014 Press Releases

Private Company Transaction Data from VC Experts Now on S&P Capital IQ Platform

The VC Experts content will prove very beneficial to our Investment Banking, Private Equity, Venture Capital and Corporate clientele who utilize our desktop, data and third party investment research in their deal analysis, said Keith Ackerman – Managing Director of S&P Capital IQ’s Research Network and, Strategic Research Partnerships. “Investors using our platform will be able to even more effectively negotiate term sheets, calculate valuations, source deals, and price transactions with more transparency and confidence, which is precisely the intelligence they expect from us.”

Proposed SEC Rule Expected to Eliminate More Than Half of Angel Investment Capital

“I do not know of any issues of importance to our economy that can match the imperative of maintaining accredited investor status as it now exists,” said Joseph Bartlett, VC Experts Co-Founder. “The cornerstone of economic growth in the United States since World War II has been the availability of venture capital for the likes of Microsoft, Google, Apple. It is, of course, true that many (or most) business startups fail; but if the solution is deemed to be steps to minimalize the opportunities for startups to get funding, we are approaching the end of the road.”

VC Experts Joins Forces with ACE Portal & NYSE

“The integration of VC Experts’ insights, data and analysis into ACE’s transaction management platform furthers our goal of improving the market for private placements by bringing greater efficiency to the private placement process and making information more readily available to investors,” said ACE chief executive officer Peter Williams.

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Partially Participating Preferred: An Alternative to Participation Caps?

By Paul A. Jones of Michael Best & Friedrich, LLP

In an earlier blog (Capping Preferred Participation: A Compromised Compromise), I argued that the usual middle ground between entrepreneur-friendly “non-participating” preferred stock and investor-friendly “participating” preferred stock – capping participation at some multiple of an investor’s base preference – is seriously flawed. Herewith an alternative approach.

By way of a quick refresh, we are talking about “participation” in the context of a preferred stock liquidation preference. In an exit transaction, other than an IPO, an investor holding “participating” preferred shares gets two bites at the exit proceeds apple. First, a bite equal to his base preference (typically an amount equal to his investment) and then a second bite equal to his pro-rata share of the remaining exit proceeds.

An example: An investor who put down $1 million for a 40% ownership position in Newco in the form of “participating” preferred shares would, in the event Newco was sold for $3 million, receive $1 million “off the top” and in addition 40% of the remaining $2 million of proceeds for a total of $1.8 million. That means the investor, who owned 40% of Newco when it was sold, would get 60% of the exit proceeds. If instead, the investor held “non-participating” preferred shares he would receive either (i) his $1 million base preference or (ii) his 40% pro-rata share of the $3 million or $1.2 million. Clearly, the investor would take the $1.2 million pro-rata share and leave the entrepreneur with $600,000 more money than he would have had if the investor had held participating preferred.

Looking at the above example, it is not hard to see why entrepreneurs don’t like participation and investors do. While the relative impact of the participation right diminishes as the exit proceeds rise (in the example, the difference is always $600,000), at every exit that leaves anything for the common shares, the investor with participating preferred gets more and the entrepreneur less.

In light of the above, entrepreneurs and investors long ago came up with a compromise on the participating/non-participating issue, the so-called “participation cap.” As with non-participating preferred, “capped” participating preferred gives an investor a choice. When exit proceeds are being distributed, the investor can choose to take either his pro-rata share of the proceeds (his percentage ownership at the exit) or his base preference plus participation in the distribution of the remaining proceeds until he has received in the aggregate an amount up to some multiple – say 2x or 3x etc. – of his base preference.

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