The first quarter of 2021 was a There were IPOs, there were exits. Coming off a in the final quarter of 2020, it was no surprise that tech upstarts pursued liquidity through various mechanisms as the new year began. , and there . We even saw enough SPACs that we lost track of a few; amid all the noise, you’ll miss the occasional note no matter how well-tuned your ear. The Exchange explores startups, markets, and money. Read it , or get every Saturday. Each path is still open for later-stage startups to pursue exits: The IPO market was welcoming until a few minutes ago. Private equity firms are and willing to pay higher multiples than they might in more normal times. And there are sufficient .
Choosing the best option from a buffet’s worth of possibilities is exciting for. DigitalOcean , raising a slug of capital. When you read its results, the SMB-focused public cloud company likely felt like a somewhat obvious IPO candidate. The Exchange spoke with the , Yancey Spruill, about the choice. Latch, in contrast, decided that out the gate. The Exchange caught up with the company’s CFO, Garth Mitchell, about the transaction and why it made sense for his company.
And finally, The Exchange spoke with AlertMedia’s founder and CEO, Brian Cruver, about his decision to sell his Texas-based company. To prevent this post from reaching an astronomic word count, we’ll and then summarize the company’s views about why their liquidity choice was the right one.
Three Paths to Liquidity
Kicking off with DigitalOcean, a few notes: First, the company has been pretty darn public about its growth in the. We it had an annualized run rate of around $200 million in 2018, $250 million in 2019, and about $300 million in the first half of 2020. It later announced that it in May of last year.
So when DigitalOcean decided to go public, we weren’t bowled over. The company wound up, the high end of its range. Since then, its stock has struggled somewhat, falling below $37 per before recovering to $43.80 at the end of trading yesterday.
Enough of all that. Why did the company choose to go public? Spruill said his . It selected the IPO route because it fits the company’s goals of generating a broad base of shareholders while creating a branding opportunity.