This Week in Pre-IPO Stocks

E126: OpenAI +14% on Apple Siri deal, Shein $64b IPO on LSE, SpaceX Starship successful 4th test flight, Databricks buys Tabular for $1b, Cohere new $5b valuation, Carta down to $2b valuation

June 07, 2024 AG Dillon & Co Episode 126
E126: OpenAI +14% on Apple Siri deal, Shein $64b IPO on LSE, SpaceX Starship successful 4th test flight, Databricks buys Tabular for $1b, Cohere new $5b valuation, Carta down to $2b valuation
This Week in Pre-IPO Stocks
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This Week in Pre-IPO Stocks
E126: OpenAI +14% on Apple Siri deal, Shein $64b IPO on LSE, SpaceX Starship successful 4th test flight, Databricks buys Tabular for $1b, Cohere new $5b valuation, Carta down to $2b valuation
Jun 07, 2024 Episode 126
AG Dillon & Co

Pre-IPO stock valuations = www.x.com/aarongdillon (see pinned post)
Pre-IPO stock index fact sheet = www.agdillon.com/index

00:07 | Databricks buys Tabular
- AI-focused data management company
- Tabular = $1b acquisition, 40 employees, founded 2021
- Tabular to enhance Databricks AI capabilities
- $1.6b in 2023 revenue, +50% vs 2022
- $42b secondary market valuation

00:57 | Shein to IPO
- Online fashion retailer, manufactures cloths in China
- $64b IPO valuation
- Net income = $2b 2023, $700m 2022, $1.1b 2021
- Revenue = $45b 2023
- 1.4x revenue multiple, very low!

02:25 | OpenAI wins Apple Siri deal
- ChatGPT to power Siri
- Deal to be announced at Apple developer event
- Deal terms not disclosed
- OpenAI +13.6% to $110b valuation on news, last round at $86b in early Q2

03:29 | Stripe partners on fraud solution
- Online payments provider
- Partnership with Capital One, Adyen to address fraud
- $1b transactions approved that would have otherwise been declined
- $77b secondary market valuation, +18.5% vs Feb 2024 round

04:31 | SpaceX successful 4th Starship test
- Space payload and satellite internet company
- Booster “landed” in Gulf of Mexico, Starship “landed” in Indian Ocean
- Starship has a more payload capacity and aims to be reuseable, lower launch costs
- $188b secondary market valuation, +11% vs Dec 2023 round
- $200b tender announced in late May

05:51 | Cohere new round
- AI large language model
- $5b valuation, +127 vs Jun 2023 round
- $35m ARR in Mar 2023, +169% vs prior year
- Strategic partnership with Oracle

06:52 | Discord increases developer payouts
- Gaming social media platform
- Halving platform fees from 30% to 15% for first $1m in cumulative gross sales
- One-time purchases now available
- $7.1b secondary market valuation, -58% vs last round (ApeVue)

07:51 | FTC after Microsoft, Inflection AI deal
- Inflection AI is a large language model business
- Founder also co-founded Google’s DeepMind AI solution
- Microsoft “bought” Inflection AI in a $650m deal; hired all employees, struck licensing deal with Inflection
- FTC is basically taking M&A off the table for venture company ecosystem

09:15 | Carta new round
- Cap table management tech/services
- $2b tender offer run by Jeffries
- Down from $7.4b 2021 valuation
- 2023 = $380m revenue, -$65m net income

10:09 | Pre-IPO +3.37% for week, +51.52% for last 1yr
- Up week: Scale +20.3%, Neuralink +16.5%, OpenAI +13.6%, Anthropic +10.4%, Canva +6.8%
- Down week: Stripe -3.5%, Groq -2.7%, Airtable -0.5%, Databricks -0.4%, Brex -0.4%
- Top valuations: ByteDance $298b, SpaceX $188b, OpenAI $110b, Stripe $77b, Databricks $42b

10:52 | 2024 Pre-IPO Stock Vintage Index week performance
- www.agdillon.com/index for fact sheet pdf
- 2024 Vintage Index top contributors since inception: Epic Games +173%, Rippling +104%, Revolut +49%, Klarna +43%, Anduril +27%
- Key metric averages for all Vintage Indexes 5 years old or older…
3.31 distributed paid in capital
2.04 residual value to paid in capital
5.35 total value to paid in capital
4.1 years to return the fund

Show Notes

Pre-IPO stock valuations = www.x.com/aarongdillon (see pinned post)
Pre-IPO stock index fact sheet = www.agdillon.com/index

00:07 | Databricks buys Tabular
- AI-focused data management company
- Tabular = $1b acquisition, 40 employees, founded 2021
- Tabular to enhance Databricks AI capabilities
- $1.6b in 2023 revenue, +50% vs 2022
- $42b secondary market valuation

00:57 | Shein to IPO
- Online fashion retailer, manufactures cloths in China
- $64b IPO valuation
- Net income = $2b 2023, $700m 2022, $1.1b 2021
- Revenue = $45b 2023
- 1.4x revenue multiple, very low!

02:25 | OpenAI wins Apple Siri deal
- ChatGPT to power Siri
- Deal to be announced at Apple developer event
- Deal terms not disclosed
- OpenAI +13.6% to $110b valuation on news, last round at $86b in early Q2

03:29 | Stripe partners on fraud solution
- Online payments provider
- Partnership with Capital One, Adyen to address fraud
- $1b transactions approved that would have otherwise been declined
- $77b secondary market valuation, +18.5% vs Feb 2024 round

04:31 | SpaceX successful 4th Starship test
- Space payload and satellite internet company
- Booster “landed” in Gulf of Mexico, Starship “landed” in Indian Ocean
- Starship has a more payload capacity and aims to be reuseable, lower launch costs
- $188b secondary market valuation, +11% vs Dec 2023 round
- $200b tender announced in late May

05:51 | Cohere new round
- AI large language model
- $5b valuation, +127 vs Jun 2023 round
- $35m ARR in Mar 2023, +169% vs prior year
- Strategic partnership with Oracle

06:52 | Discord increases developer payouts
- Gaming social media platform
- Halving platform fees from 30% to 15% for first $1m in cumulative gross sales
- One-time purchases now available
- $7.1b secondary market valuation, -58% vs last round (ApeVue)

07:51 | FTC after Microsoft, Inflection AI deal
- Inflection AI is a large language model business
- Founder also co-founded Google’s DeepMind AI solution
- Microsoft “bought” Inflection AI in a $650m deal; hired all employees, struck licensing deal with Inflection
- FTC is basically taking M&A off the table for venture company ecosystem

09:15 | Carta new round
- Cap table management tech/services
- $2b tender offer run by Jeffries
- Down from $7.4b 2021 valuation
- 2023 = $380m revenue, -$65m net income

10:09 | Pre-IPO +3.37% for week, +51.52% for last 1yr
- Up week: Scale +20.3%, Neuralink +16.5%, OpenAI +13.6%, Anthropic +10.4%, Canva +6.8%
- Down week: Stripe -3.5%, Groq -2.7%, Airtable -0.5%, Databricks -0.4%, Brex -0.4%
- Top valuations: ByteDance $298b, SpaceX $188b, OpenAI $110b, Stripe $77b, Databricks $42b

10:52 | 2024 Pre-IPO Stock Vintage Index week performance
- www.agdillon.com/index for fact sheet pdf
- 2024 Vintage Index top contributors since inception: Epic Games +173%, Rippling +104%, Revolut +49%, Klarna +43%, Anduril +27%
- Key metric averages for all Vintage Indexes 5 years old or older…
3.31 distributed paid in capital
2.04 residual value to paid in capital
5.35 total value to paid in capital
4.1 years to return the fund