The 2021 Israeli Unicorn Map

The global rise in venture capital didn’t skip Israel, which has been breaking new records the amount of venture capital raised by companies in 2021. In the first half of 2021, Israeli startups raised a staggering $12.2 billion a 125% increased compared to the equivalent period in 2020, the number of Unicorns, private companies valued at $1 billion or more has grown significantly, with several companies achieving “Decacorn” status – achieving valuations of $10 billion and up, including eToro, soon to complete a SPAC merger, and Rapyd payments.

According to CB Insights there are currently 832 unicorns globally, valued at a total of $2,702 billion. Generally speaking this breakdown applies to Israel as well, with a number of huge outcomes in fintech (Melio, Rapyd, eToro, Papaya Global, etc) and of course Cybersecurity.

What is less obvious is the growing number of Unicorns that grew in the consumer space in Israel and how diverse they are: consumer health, consumer insurance, media, music, gaming etc. Israel was historically known for semiconductors and cybersecurity but it’s now punching above its weight in consumer (B2C), gaming and commerce. As a fund that specialises in consumer tech, we at Remagine Ventures find it very encouraging and we believe we’ll see many more billion dollar companies built in Israel in the consumer space.

Global unicorn breakdown by category (Source: CB Insights)

Unicorns aren’t rare in Israel, but it’s hard to track them

Unicorns often attract media attention, as it’s not trivial to build a business valued at $1 billion. But they are by no means a rare occurrence – according to my updated list below, there are 57 current Israeli founded Unicorns. more than 20 new Israeli unicorns were added to the list so far in 2021.

But they are often hard to spot in global databases like Crunchbase, Pitchbook or CBInsights, because even though they originate from Israel, they are registered as US companies. In some Unicorns, the company was co-founded by Israelis but the centre of operation is US (like in the case of Coursera), so curators have to apply their own judgement on whether the startup is considered Israeli or not.

Another challenge with keeping this list current is that many of the Israeli unicorns ‘graduate’ by getting acquired or going public via SPACs or traditional IPOs. More than 17 Israeli unicorns graduated so far in 2021. In this post, I’ve included a visual for both current and graduated unicorns.

Without further ado, below are the updated 2021 Israeli unicorn landscape as well as recently graduated unicorns (with some exceptions):

The updated list of Israeli Unicorns (sep 2021), Credit: Eze Vidra (Remagine Ventures/VC Cafe)
Israeli graduated unicorns (2020-2021), with minor exceptions (Checkppoint, Wix, Mobileye, Autotalks) which exited earlier.

Worth remembering that Unicorn status isn’t necessarily runaway success

Becoming a unicorn doesn’t equal immortality – it’s just a value pegged in the private markets and Unicorns are susceptible to failure like any other startup. Case in point, Israeli startup Infibond, which delivered insights on users personalities based on their phone usage patterns, reached unicorn status and subsequently sold for scraps.

Moreover, several of the Israeli startups that chose a SPAC merger as an exit, are trading at lower valuations than they entered Wall Street with given that the valuations were set on future projections and not current revenues.

Israeli unicorns have evolved in recent years

In an interesting analysis published by Israeli venture firm Viola earlier this month, there are some new characteristics of the 61 Israeli unicorns companies included in their list:

  • Companies can reach Unicorn status in less than 5 years – compared to 6-10 years up to 2015
  • The average amount of capital raised by Israeli unicorns stands on $109.2 million, with a standard deviation of $55M
  • Companies are hitting Unicorn valuations with $25M or less in revenue, compared to $75M-$100M in the period of 2013-2016
  • The majority of Israeli unicorns are still managed by their founders, who come from relatively diverse backgrounds and prior experience. The CTOs of Israeli unicorns, are typically 8200 alumni or come from a strong tech units in the IDF
  • Most unicorns founding teams have 2-3 co-founders
  • Over 50% of the Israeli unicorn CEOs are based in Israel – a departure from the Israeli startup adage that in order to succeed the company has to be based in the US. Examples include: Monday, Similarweb, Wix, Ironsource,

Thousands of new millionaires, but more work is needed for Israeli tech to continue to thrive

High Tech represents 15% of Israel's GDP -  Israel's Innovation Authority
High Tech represents 15% of Israel’s GDP (Source: Israel’s Innovation Authority)

The impact of these new unicorns and especially the graduated unicorns which provide liquidity to both investors and employees (after lock up periods), have meant that potentially thousands of employees have become millionaires. For example, in the case of Ironsource alone, Israeli newspaper Calcalist estimated that over 230 employees made over $1 million. That’s generally great, but it hasn’t all been well received in the public opinion.

Much of the new riches have been going into real estate, which contributed to price increases and some public backlash on the increasing gaps in the Israeli society. Only 400,000 Israelis participate in the high-tech sector in Israel and there’s low inclusion in tech by large parts of the Israeli society, including Israeli Arabs and Orthodox Jews. Several great initiatives are getting traction and funding (Kamatech, Moona, etc) , but a lot more work is needed in order to increase the diversity in the tech industry, and address the talent crunch that Israeli startups already feel – competing with cash-rich unicorns, multi national tech giants and other startups.

Further reading:

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Freshworks’ valuation could crest $10B in upcoming IPO

Earlier today, TechCrunch examined the new IPO price range for Toast. The U.S. software-and-fintech company moved its valuation materially higher in anticipation of pricing tomorrow after the bell and trading on Wednesday. It was not alone in doing so.

Freshworks is also targeting a higher IPO price range, it disclosed today in a fresh SEC filing. The customer service-focused software firm now expects to charge between $32 and $34 per share in its debut, up from the $28 to $32 per-share range that it initially disclosed.

Doing some back-of-the-envelope math, Freshworks’ IPO valuation could just pass the $10 billion mark, calculated on a fully diluted basis. Its simple IPO valuations, while rising, are lower than that figure.

Mathing that out, Freshworks expects to have 284,283,200 shares outstanding when public, inclusive of its underwriters’ option, but not inclusive of vested shares present in RSUs or options. At its new IPO price range, Freshworks would be worth between $9.1 billion and $9.7 billion.

Toast raises IPO price range, providing a Monday bump to fintech valuations

U.S. technology unicorn Toast filed a new S-1 document this morning detailing a higher IPO price range for its shares. The more expensive range indicates that Toast may be worth more in its debut than it initially expected, a bullish sign for technology companies more broadly.

Toast’s rising valuation may provide a boon to two different subsectors of technology: software and fintech. The restaurant-focused Toast sells software on a recurring basis (SaaS) to restaurants while also providing financial technology solutions. And while it is best known as a software company that dabbles in hardware, Boston-based Toast generates the bulk of its aggregate top line from financial services.

Software revenues are valuable thanks to their high margins and recurring structure. Toast’s financial-services revenues, by contrast, are largely transaction-based and sport lower gross margins. The company’s IPO price, then, could help the private markets more fairly price startups offering their own blend of software-and-fintech incomes.

The so-called “vertical SaaS” model, in which startups build software tailored to one particular industry or another, has become a somewhat two-part business effort; many startups today are pursuing both the sale of software along with fintech revenues. Toast’s IPO, then, could operate as a bellwether of sorts for a host of startups.

To see Toast raise its range, therefore, got our eyebrows up. Let’s talk money.

Toast’s new IPO range

From a previous range of $30 to $33, Toast now expects to price its IPO between $34 and $36.

Toast now expects its IPO price to clear its previous upper-end guidance at the low end of its new range. That’s bullish — and indicative of a thus-far receptive market for the company’s equity.

Inside GitLab’s IPO filing

While the technology and business world worked towards the weekend, developer operations (DevOps) firm GitLab filed to go public. Before we get into our time off, we need to pause, digest the company’s S-1 filing, and come to some early conclusions.

GitLab competes with GitHub, which Microsoft purchased for $7.5 billion back in 2018.

The company is notable for its long-held, remote-first stance, and for being more public with its metrics than most unicorns — for some time, GitLab had a November 18, 2020 IPO target in its public plans, to pick an example. We also knew when it crossed the $100 million recurring revenue threshold.

Considering GitLab’s more recent results, a narrowing operating loss in the last two quarters is good news for the company.

The company’s IPO has therefore been long expected. In its last primary transaction, GitLab raised $286 million at a post-money valuation of $2.75 billion, per Pitchbook data. The same information source also notes that GitLab executed a secondary transaction earlier this year worth $195 million, which gave the company a $6 billion valuation.

Let’s parse GitLab’s growth rate, its final pre-IPO scale, its SaaS metrics, and then ask if we think it can surpass its most recent private-market price. Sound good? Let’s rock.

The GitLab S-1

GitLab intends to list on the Nasdaq under the symbol “GTLB.” Its IPO filing lists a placeholder $100 million raise estimate, though that figure will change when the company sets an initial price range for its shares. Its fiscal year ends January 31, meaning that its quarters are offset from traditional calendar periods by a single month.

Let’s start with the big numbers.

In its fiscal year ended January 2020, GitLab posted revenues of $81.2 million, gross profit of $71.9 million, an operating loss of $128.4 million, and a modestly greater net loss of $130.7 million.

And in the year ended January 31, 2021, GitLab’s revenue rose roughly 87% to $152.2 million from a year earlier. The company’s gross profit rose around 86% to $133.7 million, and operating loss widened nearly 67% to $213.9 million. Its net loss totaled $192.2 million.

This paints a picture of a SaaS company growing quickly at scale, with essentially flat gross margins (88%). Growth has not been inexpensive either — GitLab spent more on sales and marketing than it generated in gross profit in the past two fiscal years.

Gingko Bioworks, valued at $15B, begins trading today: Here’s how their business works

Gingko Bioworks, a synthetic biology company now valued at around $15 billion, begins trading on the New York Stock Exchange today.

Gingko’s market debut is one of the largest in biotech history. It’s expected to raise about $1.6 billion for the company. It’s also one of the biggest SPAC deals done to date — Gingko is going public through a merger with Soaring Eagle Acquisition Corp., which was announced in May. 

Shares opened at $11.15 each this morning under the ticker DNA — biotech dieharders will recognize it as the former ticker used by Genentech. 

The exterior of the NYSE is decked out in Gingko decor. The imagery is clearly sporting Jurassic Park themes, as MIT Tech Review’s Antonio Regalado pointed out. It’s probably intentional: Jason Kelly, the CEO of Ginkgo Bioworks, has been re-reading Jurassic Park this week, he tells TechCrunch. 

The decor also sports a company motto: “Grow everything.”

Ginkgo was founded in 2009, and now bills itself as a synthetic biology platform. That’s essentially premised on the idea that one day, we’ll use cells to “grow everything,” and Gingko’s plan is to be that platform used to do that growing. 

Kelly, who often uses language borrowed from computing to describe his company, likens DNA to code. Gingko, he says, aims to “program cells like you can program computers.” Ultimately, those cells can be used to make stuff: like fragrances, flavors, materials, drugs or food products. 

The biggest lingering question over Gingko, ever since the SPAC deal was announced, has centered on its massively high valuation. When Moderna, now a household name thanks to its Covid-19 vaccines, went public in 2018, the company was valued at $7.5 billion. Gingko’s valuation is double that number. 

“I think that surprises people to be honest,” Kelly says. 

How is Gingko going to make money? 

Ginkgo’s massive valuation seems even starker when you look at its existing revenues. SEC documents show that the company pulled in $77 million in revenue in 2020, which increased to about $88 million in the first 6 months of 2021 (per an August investor call) The company has also reported losses: including $126.6 million in December 2020 and $119.3 million in 2019. 

Gingko is aiming to increase revenue a significant amount in 2021. SEC documents initially noted that the company aimed to draw about $150 million in revenue in 2021, but the August earning call updated that total for the year to over $175 million. 

Gingko aims to make money in two ways: first it contracts with manufacturers during the research and development phase (i.e. while the company works out how to manufacture a cell that spits out a certain fragrance, bio-based nylon, or a meatless burger). That process happens in Gingko’s “foundry” a massive factory for bioengineering projects. 

This source of money is already starting to flow. Gingko reported $59 million in foundry revenue for 2020, and anticipates $100 million in 2021, per the August investor call

This revenue, though, isn’t covering the full costs of Gingko’s operations according to the information shared by the company in SEC documents. It is covering an increasing share, though, and as Gingko scales up its platform, costs will come down. Based on fees alone, Kelly projects Gingko will break even by 2024 or 2025. 

The second type of revenue comes from royalties, milestone payments, or in some cases equity stakes in the companies that go on to sell products, like fragrances or meatless burgers, made using Gingko’s facilities or know-how. It’s this source of income that will make up the vast majority of the company’s future worth according to its expectations. 

Once the product is made and marketed by another company, it requires little to no more work on Gingko’s part – all the company does is collect cash. 

The company is often hesitant to incorporate these earnings into projections, because they rely on other companies bringing products to market. That means it’s hard to know for sure when these downstream payments will emerge. “In our models, we are very sensitive that, at the end of the day, they’re not our products. I cannot predict when Roche might bring a drug to market and give me my milestones,” says Kelly. 

Kelly says there’s evidence this model will start to work in the near-term. 

Gingko earned a “bolus” milestone payment of 1.5 million shares of The Cronos Group, a cannabis company, for developing a commercially viable, lab grown rare cannabinoid called CBG for commercial use (there are seven more in strains development, says Kelly). These milestone payments (in cash or shares) are earned when a company achieves some predetermined goal using Gingko’s platform. 

Gingko has also worked with Aldevron to manufacture an enzyme critical to the production of mRNA vaccines, and plans to collect royalty payments from that relationship — though no foundry fees were collected from this project. 

Finally, Gingko has negotiated an equity stake in Motif Foodworks, a spinout company based on its technology. That company has so far raised about $226 million, and will aim to launch a lab-grown beef product developed at Gingko’s foundry, paying Gingko the aforementioned foundry fees already for this contribution.

“The biggest value driver” of Gingko, according to Kelly

This rich source of cash will depend a lot on the outside contractor’s ability to manufacture and sell products made using Gingko’s platform. This opens the company up to some risk that’s beyond its control. Maybe, for instance, it turns people don’t want bio-manufactured meat as much as many anticipated – that means some types of downstream payments may not materialize. 

Kelly says he’s not particularly worried about this. Even if one particular program fails, he’s planning on having so many programs running that one or two are bound to succeed. 

“I’m just sorta like: some will work, some won’t work. Some will take a year, some will take three years. It doesn’t really matter, as long as everybody is working with us,” he says. “Apple doesn’t stress about what apps are going to be the next big app in the app store,” he continues.  

One key metric to watch for Gingko going forward will be how many new cell programs they’re managing to close. So far, Gingko has added thirty programs this year, says Kelly. Last year, there were 50 programs. 

Remember: some of the projects are Gingko spinouts, like Motif Foodworks, not customers that come to the platform on their own. And historically, the number of companies Gingko has partnered with has been a point of criticism. Per SEC documents, the majority of revenue came from two large partners in 2020 – though Kelly told Business Insider that this was a pandemic-related downturn. 

The more programs Gingko has, the more it becomes insulated from the success or failure of any one product. Plus it’s a sign that people are at least using the “app store” for biology. 

“The biggest value driver of Gingko is how quickly we add programs,” Kelly says. 

Swedish caller-identification service Truecaller seeks to raise over $100 million in IPO

Truecaller, which operates an eponymous caller-identification service, said on Wednesday it is looking to raise $116 million in an initial public offering on Nasdaq Stockholm.

The 12-year-old Stockholm-headquartered firm, which counts India as its biggest market by users, is aiming for a valuation of about $3 billion in the IPO, according to earlier local media reports. The company said it plans to do its listing by fourth quarter of this year.

The firm, which has amassed 278 million monthly active users, has been working on its initial public offering for at least two years, according to TechCrunch’s past conversations with Truecaller co-founder and chief executive Alan Mamedi.

The firm counts Sequoia Capital and Atomica among its earlier investors. It has raised over $95 million over the years, according to Crunchbase. Six years ago, the firm engaged with some investors to raise an additional $100 million at a valuation of $1 billion, TechCrunch reported, but the deal never materialized.

“One of our objectives this year has been to prepare Truecaller for an IPO. Thanks to the strong feedback that we’ve received from potential investors, it feels very exciting to take the next step in this process. A listing of Truecaller is not only a milestone for Nami [the other co-founder], myself and all of our employees who have contributed to building Truecaller to the fantastic platform that it is today, but also to the growing Swedish tech ecosystem,” he said in a statement Wednesday.

“Even though we are twelve years into our incredible journey, we believe that this is just the beginning and we have a clear strategy to continue to grow and develop our services and products. I look forward to welcoming existing and new shareholders on this journey.”

Truecaller’s service allows users to avoid spam calls by identifying the callers, and also filters similar texts. The service is popular in many parts of the world, but India, where everyone receives dozens of such calls each month, is Truecaller’s biggest market by users.

Even as Apple and Google have improved the caller ID feature in their mobile operating systems in recent years, and taken several other steps to curb spam calls, Truecaller’s offerings remain unmatched.

The firm — which reported an operating revenue of $57 million in 2020, up from $22 million in 2018 — has expanded to additional categories such as financial services in recent years in India.

Truecaller will be the latest public exit for Sequoia Capital India this year. The venture fund, the most prolific investor in Indian startups, has seen five exits this year including food delivery startup Zomato, and Indigo Paints.

“Truecaller has made communication smarter, safer and more efficient across the world. As smartphone usage increases globally, fraud and unwanted communication has followed, and Truecaller has turned into an indispensable platform for consumers and businesses. With a clear focus on innovation and growth, Truecaller is on an exciting journey to reach even more users with even better products,” said Shailesh Lakhani, Managing Director at Sequoia Capital India, in a statement.

Rivian vehicles are now ready for sale in all 50 states, following key certifications

Rivian vehicles have received certifications from three agencies, the final hurdle that allows the electric automaker to sell and deliver its R1T pickup truck and R1S SUV in all 50 U.S. states.

Rivian confirmed to TechCrunch in an email that the vehicles are fully certified by the National Highway Traffic Safety Administration, the Environmental Protection Agency and the California Air Resources Board. Bloomberg also reported that Rivian has received regulatory approval to deliver vehicles to customers.

Rivian has a direct sales model, in which customers can order its vehicles online. Dealer protection laws in many states prohibit companies like Rivian from having its own stores, where customers can take test drives and learn about financing options. However, there are no restrictions from customers ordering online from those states.

Today, 22 states allow for all vehicle manufacturers to sell vehicles to customers, according to the NRDC. In those states, Rivian can set up stores, display vehicles, offer test rides and importantly discuss financing. Another 11 states allow for only Tesla, which also has a direct sales model, to sell vehicles, often in a limited number of locations throughout the state.

Rivian plans to begin deliveries of the R1T launch edition this month. Deliveries of the R1S SUV are expected to follow this year.

Confirmation of the certifications from the state and two federal agencies followed a trio of announcements in the past several weeks that , including the first production Rivian R1T electric pickup truck in “Rivian blue” rolling off the assembly line Tuesday morning at the company’s factory in Normal, Illinois. The company’s two vehicles also received official EPA ranges of 314 miles for the first edition version of its all-electric R1T pickup truck and 316 miles for the R1T SUV.

All of this follows Rivian confidentially filing paperwork with the U.S. Securities and Exchange Commission to go public. The company, backed by a host of institutional and strategic investors including Ford and Amazon, has not size and price range for the proposed offering.

Sources familiar with Rivian’s IPO plans said the company has not yet started the “roadshow,” a process in which an underwriting firm and company management make a series of presentations to potential investors before going public.

 

Casper cuts its CMO, CTO and COO amid further layoffs

Casper has laid off dozens of employees, including three C-Level executives: its chief marketing officer, chief technology officer and chief operating officer, sources say. The mattress company declined to comment.

The round of layoffs, communicated to employees on Friday, largely impacted retail and operations teams, signaling that the business may be undergoing a broader restructuring. Laid-off employees were offered severance packages.

Notably, the impacted executives were all fairly recent additions to the team. CTO Ben Clark has been with the company since July 2019, while former CMO Lisa Pillette joined Casper in March 2020. Casper COO Charles Liu had only been at the company for eight months before this round of layoffs.

Casper’s CFO remains at the startup, but that role has had some significant turnover as well. In an April 2020 business update, Casper announced that Gregory Macfarlane, its CFO and COO at the time, was leaving the company. Interim CFO Stuart Brown eventually took the role, and three months later resigned. The latest CFO, Michael Monahan, took the position effective August 31, 2021.

Over a year ago, Casper announced it was shutting down its European operations, cutting 21% of its global workforce. The move was then attributed to Casper’s new goal of  “achieving profitability,” which included a focus on North American operations.

The business hinted then that the temporary closure of its retail stores impacted its overall direct-to-consumer channel, forcing it to take steps to minimize operating costs. Now, the startup is going one step further by eliminating roles within its retail and operations teams.

One founder in the direct-to-consumer space, who spoke on the condition of anonymity due to her lack of direct knowledge with the company, said that Casper’s layoffs could also be a response to iOS 14.5, Apple’s latest software that will crack down on apps that track users’ data without permission. The setting restricts the advertising data that companies can access, making it harder to justify budget and understand the efficacy of their sales strategy.

“Performance marketing through paid channels, specifically Facebook and Instagram, is wonky right now,” the person said. “So, if they were really reliant on that channel that could be something that is affecting their sales.”

Casper priced its IPO shares at $12 and debuted at $14.50 a share just as the COVID-19 pandemic was gaining momentum in February 2020. The company dove nearly 72% from its opening price before recovering, reaching a more recent peak of nearly $11 in February 2021. Today, the company trades at just above $5, a decline of more than half from its opening.

What to make of Freshworks’ first IPO price range

Two major private tech companies announced IPO price ranges this morning, with Toast targeting a market value of nearly $18 billion at the top end of its range and Freshworks looking to price its equity between $28 and $32 per share. TechCrunch calculates that the company would be worth around $8.9 billion at $32 per share, not employing a fully diluted share count.

Inclusive of shares represented by fully vested options and the like, Freshworks’ valuation could reach $9.6 billion, Renaissance Capital reports.

Unlike Toast, with a revenue mix including four distinct products, Freshworks is a more straightforward software company. That means we can do much more interesting work to understand its valuation. So, this morning, let’s unpack how Freshworks is considering valuing itself in its IPO at its present range, look at some market comps, and come to a conclusion regarding whether or not we expect the unicorn to raise its valuation before it floats.

Lies, damned lies and revenue multiples

As a refresher, in the first half of 2021 (Q1 and Q2), Freshworks posted revenues of $168.9 million. That annualizes to $337.9 million, thanks to numerical rounding.

At a valuation of $9.6 billion — recall that simple IPO valuations for the company and lower share-price points from its IPO range generate lower valuations and therefore more conservative multiples than what we’ll be discussing here — Freshworks would be worth 28.4x its current revenue run rate, set during H1 2021.

Quizlet plans for IPO over a year after hitting unicorn status

Quizlet, a flashcard tool turned artificial intelligence-powered tutoring platform, is planning an initial public offering nearly a year after it was valued at $1 billion. According to people familiar with the matter, Quizlet is considerably far along in the process to go public. A recent job filing shows that it is hiring for senior roles to “help build the financial systems and processes as we move towards an IPO.”

In an email to TechCrunch, the San Francisco-based edtech startup declined to comment. Quizlet hasn’t said much about its revenue specifics or if it’s profitable. Last year, the still-private startup claimed it was growing revenue 100% annually. On its website, Quizlet says that it has 60 million monthly learners, up 10 million learners compared to its 2018 totals.

Quizlet has built a large-scale business around simple to share and simple to use products. Its free flashcard maker helps students spin up study guides on topics to prepare for exams. Those insights fuel Quizlet Plus, the startup’s subscription product that charges $47.88 a year for access to more features, including tutoring services.

Quizlet’s tutoring arm, also known as Quizlet Learn, is the company’s most popular offering, per CEO Matthew Glotzbach. As a student goes through the system, Quizlet Learn consistently assesses students to see where they are making mistakes — and where they are making progress.

“It obviously doesn’t yet replace and can’t come anywhere close to replacing a human, but it can provide that guidance and point you in the right direction and help you spend your time in the right places,” he said. “Just even helping you set goals is such a critical step in learning.”

Most recently, Quizlet announced the launch of explanations, a feature that offers a step-by-step solution guide for problem sets from popular textbooks. The feature is “written and verified by experts” and is aimed to help “students better understand the reasoning and thought process behind study questions so they can practice and apply their learnings on their own,” it said in a statement. It also reclaimed the Q from its less fortunate predecessor, amid an entire rebrand.

Quizlet’s quiet march toward the public markets has been slow yet steady. The startup was founded in 2005 by a 15-year-old, Andrew Sutherland. It was fully bootstrapped until 2015. Glotzbach, who was previously an executive at YouTube, then joined in 2016. The startup still doesn’t appear to have a CFO, which is rare for companies that are going public.

Quizlet has raised a majority of its $62 million in venture capital under Glotzbach. Now, investors in the company include General Atlantic, Owl Ventures, Union Square Ventures, Costanoa Ventures and Altos Ventures.

Quizlet’s pursuit of the public markets comes as other edtech companies are proving the market’s reception to the sector. Duolingo, for example, is another consumer-focused education company, albeit one that focuses on one vertical versus Quizlet’s choice to stay broad. Duolingo went public in July, and is currently trading above its open price at $169.75 per share.