Tech IPOs 2020: Affirm, Airbnb, C3.ai, Roblox, Wish

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The anticipation ended this week as Airbnb officially submitted its S-1 filing, alongside Affirm, C3.ai, Roblox, and Wish. These five companies are poised to begin trading on the public markets before the close of an already exceptional year for technology IPOs. It appears the existing global pandemic and political instability weren't deterrents.

Looking ahead to the next decade, it’s reasonable to anticipate a more distributed pattern of tech companies becoming publicly traded. Many of the aforementioned companies have been privately held and focused on growth for several years. Currently, the industry possesses a stronger understanding of SPACs, direct listings, and diverse funding avenues, providing companies with more options for growth and eventual exit strategies from their inception. Investors in the public market during 2020 also demonstrate a greater understanding of current revenue figures and potential future growth within the tech sector. It’s worth recalling the numerous individuals who confidently predicted the failure of the Facebook IPO in the recent past.

Will we observe a more geographically diverse range of IPO origins? Although all of this week’s filings originate from companies based in San Francisco or the surrounding area, this now seems largely attributable to the period when these businesses were initially established. An increasing number of states are now producing their own unicorn companies, exemplified by Root Insurance, based in Ohio, recently becoming public, and Qualtrics, based in Utah, preparing to do the same. Tech startups are now operating on a global scale, and numerous countries are actively working to retain their unicorn companies within their own borders rather than losing them to locations like New York.

Now, let’s turn to the headlines from TechCrunch and Extra Crunch:

If you didn’t achieve $1B in funding this week, your venture capital efforts are falling short (EC)

Affirm submits IPO filing

A detailed analysis of Affirm’s IPO filing: Examining its financial performance, profitability, and revenue sources (EC)

Airbnb submits IPO filing

Five key questions arising from Airbnb’s IPO filing (EC)

The venture capital firms and founders who stand to benefit from Airbnb’s IPO (EC)

Roblox submits IPO filing

Determining the valuation of Roblox (EC)

Wish files for IPO with 100 million monthly active users and $1.75 billion in revenue generated through 2020

A comprehensive review of the C3.ai IPO filing (EC)

Considering a 2021 IPO, what insights do we have regarding Robinhood’s Q3 performance? (EC)

What does a Biden administration mean for tech?

What are Joe Biden’s plans regarding technology policy as president? Technology firms may not experience a particularly warm reception at the White House. As Taylor Hatmaker points out, “While we are observing some previously known individuals being considered for positions, the political landscape of 2020 differs significantly from that of 2008.” Companies once favored within the tech sector are now facing increased scrutiny. New regulations are anticipated across multiple areas. The era of a technologically focused, optimistic approach seen during the Obama administration has concluded, and a different direction is expected.

Despite this, technology sectors and businesses aligned with common objectives could receive backing. Jon Shieber’s analysis of Biden’s policies on climate change highlights substantial plans for green infrastructure that may be implemented.

The future of construction tech

This year, the construction sector is facing increased difficulties due to a growing shortage of qualified workers, compounding its existing challenges. As a result, the integration of new technologies is experiencing significant momentum, as Allison Xu from Bain Capital Ventures details in a recent guest article for Extra Crunch. She identifies six primary areas within construction where technology-focused startups are currently emerging: project initiation, design and engineering, pre-construction activities, the construction process itself, post-construction phases, and overall construction administration. The following excerpt from the article focuses on the latter category:

Virtual Headquarters in a Post-Pandemic World?

Workplace tools developed during the pandemic, such as digital platforms for team collaboration and virtual meetings, are now facing a shifting landscape as vaccination rates increase. The question arises: has the widespread adoption of remote work created a sustained demand for these solutions? Natasha Mascarenhas has investigated the current status with leading companies in the field, and the following details her findings:

Regarding TechCrunch Events

The commander of the United States Space Force, General John W. ‘Jay’ Raymond, will be participating in TechCrunch Sessions: Space.

David Limp, who leads Amazon’s Project Kuiper, is scheduled to appear at TC Sessions: Space.

Across the week

TechCrunch

Despite significant challenges, the powerful impact of startup founders who are immigrants is clearly evident.

S16 Angel Fund has initiated a network of entrepreneurs designed to enable them to invest in their peers.

Early-stage financial technology company Financial Venture Studio has successfully completed fundraising for its first investment fund, aiming to expand upon its history of successful investments.

An examination of how competitive video gaming could provide a solution for challenges facing higher education institutions.

An inquiry into the reasons why companies providing remote healthcare services are adopting business models similar to those used in the freelance sector.

A recent legal ruling supporting the startup UpCodes could establish precedents regarding public availability of legal information.

Extra Crunch

An assessment of whether the new Zoom Apps feature has the potential to become a prominent platform for new businesses.

A consideration of the possibility that the current system of online advertising revenue is on the verge of a major disruption.

The increasing number of skilled local professionals and venture capital investments are contributing to a revitalization of the technology sector in Italy.

An exploration of the benefits that some venture capitalists find in collaborating with entrepreneurs launching their first ventures.

Three specific strategies that contributed to our company exceeding the performance of Noom and Weight Watchers.

An evaluation of the effectiveness of the Securities and Exchange Commission’s recently implemented regulations for equity crowdfunding.

#EquityPod

From Alex Wilhelm:

Greetings and welcome back to Equity, TechCrunch’s podcast concentrating on venture capital (and now available on Twitter!), where we analyze the figures underlying the latest news.

The past week proved to be exceptionally active. Considering it included the initial public offering (IPO) filings from both Airbnb and Affirm, alongside numerous substantial funding rounds for emerging unicorns, several noteworthy smaller investment occurrences, and the launch of new funds, this is hardly surprising.

We had a considerable amount to discuss, but with Chris, Danny, Natasha, and myself, we tackled it directly:

• Affirm has submitted its IPO filing! This fintech unicorn is substantial, experiencing growth, and demonstrating a decreasing trend in financial losses. Our initial assessment was quite favorable. Upon further examination, however, we identified a couple of potential areas of concern. Nevertheless, Affirm is proceeding with its public offering from a solid position.
• Airbnb also filed for an IPO, prompting us to quickly produce an Equity Shot on Tuesday to process the announcement. Subsequently, Danny investigated the venture capital firms that benefited most—a surprisingly limited group!—and we also explored some questions I had regarding the company’s financial standing.
• Reports suggest that Robinhood is planning an IPO, so we discussed the available information concerning its growth during the third quarter.
• We also covered developments in the edtech sector, including Tencent’s investment in Udemy, Duolingo’s additional funding, and Transfr’s successful completion of a Series A round, which we found particularly compelling.
• Danny expressed interest in discussing the Trust & Will Series A. We attempted to refrain from making too many humorous remarks.
• ZenBusiness secured $55 million in funding, representing a significant Series B round.
• Financial Venture Studio established a new fund dedicated to making smaller investments in early-stage fintech companies. We view this as a positive development, particularly considering the current state of the fintech venture capital landscape.
• Natasha presented her latest in-depth analysis, focusing on the evolving concept of virtual headquarters. This discussion resulted in what many considered to be the show’s weakest joke.

It was a busy week! We released three episodes, set some new benchmarks, and are all feeling quite fatigued after all the activity. Join us again on Monday!