There has been plenty of big startup finance news the last several weeks. Apptio finally is going public, and even though OfferUp still isn’t making a dime, it’s now the area’s only unicorn. Here’s more on those two companies and other financing news from around the Eastside.
OfferUp Becomes a Unicorn
OfferUp closed its latest round of funding, led by venture capital firm Warburg Pincus, with $119 million. The company, founded in 2011, raised the money at a valuation of more than $1 billion, making it tech’s newest unicorn.
“This gives us an incredible opportunity to continue developing a product that makes local buying and selling as simple as possible,” CEO Nick Huzar wrote in a company blog post.
Huzar has said the company is on track to move $14 billion in sales volume this year, but OfferUp has yet to make any revenue. At the beginning of this year, the company began exploring options to generate revenue, including a 9 percent fee on in-app payments. In Huzar’s blog post, he reported that the new investment will be used to spur more growth, hire new employees, and develop new products.
The finance round included investments by GGV Capital and Altimeter Capital. Previous investors include Andreessen Horowitz, High Line Venture Partners, Jackson Square Ventures, T. Rowe Price, and Coatue Management. OfferUp raised $91 million at the end of 2015, and this recent round brings the total to $210 million.
“The problem we feel like we’re solving is taking underutilized assets and giving them a new life. That could be in the form of unused things … but we think it’s bigger than that,” Huzar said to 425 Business earlier this year. “We look at what we’re doing as transforming how people buy and sell locally, so it doesn’t have to be a used good. We have small stores that buy and sell locally.”
Apptio Prepares to go Public
Apptio filed an initial public offering with the U.S. Securities and Exchange Commission in September. After filing, the company disclosed that it will sell six million shares of Class A common stock at $13 to $15 per share. The total offering could total $100 million, though Apptio’s paperwork shows an expectation of $74.8 million.
The company reported 2015 revenue at $123 million with a net loss of $41 million. Lead underwriters are Goldman Sachs, J.P. Morgan, and Bank of America Merrill Lynch.
Local venture capital firm Madrona Venture Group owns 16.6 percent of the company. CEO Sunny Gupta reportedly holds 18.7 percent ownership.
Gupta founded the company in 2007 and the possibility of the company presenting an IPO has been tossed around for the past two years. Meanwhile, Gupta continued to build an executive team with experience in running public companies, handling investor relations, and law.
When Apptio does go public, it would be the second area company to do so this year. Seattle’s Impinj went public in July at $14 per share.
Auth0 Raises $15M Series B Round
In August, Bellevue-based Auth0 raised $15 million in its Series B round of funding. The round was led by Trinity Ventures. The company has developed a universal platform for authentication and authorization, which makes it easy for developers to implement identity solutions for web, mobile, and internal applications.
“Identity is an asset. Unless it’s not secure — and then it can become a liability,” Jon Gelsey, CEO of Auth0, said in a statement. “Since Auth0 was founded four years ago, we’ve provided subscribers with a frictionless way to implement strong identity security. This new funding will help fuel product development focused on even stronger security for our subscribers, which include the features available within Auth0’s Anomaly Detection suite.”
As part of the financing, Trinity general partner, Karan Mehandru, has joined the Auth0 board of directors.
The round included previous investors Bessemer Venture Partners, K9 Ventures, and Silicon Valley Bank. The company raised a Series A round in June 2015 of $9 million. In the past 12 months, Auth0 opened a new office in London and expanded business in Asia. The new round of funding will help Auth0 improve and expand its features, as well as meet a growing subscriber demand.
Other Companies Making Rain
Bellevue-based Booyami Inc., a financial tech startup that operates under the name BBC Easy, raised $759,000 of a $6.5M equity-only offering.
Briotech Inc., a Woodinville-based biotech startup, raised $250,000 of a $350,000 equity-only offering.
Recurrence Inc., an education tech startup based in Bellevue, raised $179,000 of $550,000 debt-only financing.
Mercer Island-based indie game developer MetaArcade Inc. raised $50,000 of a $1 million round of financing.
Sammamish-based Impakt Athletics Inc., a sports technology platform, raised $150,000 in an equity-only round of financing.