Big revenues, huge valuations and major losses: charting the era of the unicorn IPO

We can make charts galore about the tech IPO market. Yet none of them diminish the profound sense that we are in uncharted territory.

Never before have so many companies with such high revenues gone public at such lofty valuations, all while sustaining such massive losses. If you’re a “growth matters most” investor, these are exciting times in IPO-land. If you’re the old-fashioned value type who prefers profits, it may be best to sit out this cycle.

Believers in putting market dominance before profits got their biggest IPO opportunity perhaps ever last week, with Uber’s much-awaited dud of a market debut. With a market cap hovering around $64 billion, Uber is far below the $120 billion it was initially rumored to target. Nonetheless, one could convincingly argue it’s still a rich valuation for a company that just posted a Q1 loss of around $1 billion on $3 billion in revenue.

So how do Uber’s revenues, losses and valuation stack up amidst the recent crop of unicorn IPOs? To put things in context, we assembled a list of 15 tech unicorns that went public over the past three quarters. We compared their valuations, along with revenues and losses for 2018 (in most cases the most recently available data), in the chart below:

 

Put these companies altogether in a pot, and they’d make one enormous, money-losing super-unicorn, with more than $25 billion in annual revenue coupled to more than $6 billion in losses. It’ll be interesting to revisit this list in a few quarters to see if that pattern changes, and profits become more commonplace.

History

It’s easy to draw comparisons to the decades-old dot-com bubble, but this time things are different. During the dot-com bubble, I remember penning this lead sentence:

“If the era of the Internet IPO had a theme song, it might be this: There’s no business like no business.”

That notion made sense for bubble-era companies, which commonly went public a few years after inception, before amassing meaningful revenues.

That tune won’t work this time around. If the era of the unicorn IPO had a theme song, it wouldn’t be nearly as catchy. Maybe something like: “There’s no business like lots of business and lots of losses too.”

I won’t be buying tickets to that musical. But when it comes to buying IPO shares, the unicorn proposition is a bit more appealing than the 2000 cycle. After all, it’s reasonably plausible for a company with dominant market share to tweak its margins over time. It’s a lot harder to grow revenues from nothing to hundreds of millions or billions, particularly if investors grow averse to funding continued losses.

Of course, the dot-com bubble and the unicorn IPO era do share a common theme: Investors are betting on an optimistic vision of future potential. If expectations don’t pan out, expect share prices to follow suit.

Startups Weekly: There’s an alternative to raising VC and it’s called revenue-based financing

Revenue-based financing is on the rise, at least according to Lighter Capital, a firm that doles out entrepreneur-friendly debt capital.

What exactly is RBF you ask? It’s a relatively new form of funding for tech companies that are posting monthly recurring revenue. Here’s how Lighter Capital, which completed 500 RBF deals in 2018, explains it: “It’s an alternative funding model that mixes some aspects of debt and equity. Most RBF is technically structured as a loan. However, RBF investors’ returns are tied directly to the startup’s performance, which is more like equity.”

Source: Lighter Capital

What’s the appeal? As I said, RBFs are essentially dressed up debt rounds. Founders who opt for RBFs as opposed to venture capital deals hold on to all their equity and they don’t get stuck on the VC hamster wheel, the process in which you are forced to continually accept VC while losing more and more equity as a means of pleasing your investors.

RBFs, however, are better than traditional debt rounds because the investors are more incentivized to help the companies they invest in because they are receiving a certain portion of that business’s monthly revenues, typically 1% to 9%. Eventually, as is explained thoroughly in Lighter Capital’s newest RBF report, monthly payments come to an end, usually 1.3 to 2.5X the amount of the original financing, a multiple referred to as the “cap.” Three to five years down the line, any unpaid amount of said cap is due back to the investor. When all is said in done, ideally, the startup has grown with the support of the capital and hasn’t lost any equity.

At this point, they could opt to raise additional revenue-based capital, they could turn to venture capital or they could tap a tech bank to help them get to the next step. The idea is RBF is easier on the founder and it allows them optionality, something that is often lost when companies turn to VCs.

IPO corner, rapid-fire edition

Slack’s direct listing will be on June 20th. Get excited.

China’s Luckin Coffee raised $650 million in upsized U.S. IPO

Crowdstrike, a cybersecurity unicorn, dropped its S-1.

Freelance marketplace Fiverr has filed to go public on the NYSE.

Plus, I had a long and comprehensive conversation with Zoom CEO Eric Yuan this week about the company’s closely watched IPO. You can read the full transcript here.

Second Chances

Silicon Valley entrepreneur Hosain Rahman, the man behind Jawbone, has managed to raise $65.4 million for his new company, according to an SEC filing. The paperwork, coincidentally or otherwise, was processed while most of the world’s attention was focused on Uber’s IPO. Jawbone, if you remember, produced wireless speakers and Bluetooth earpieces, and went kaput in 2017 after burning up $1 billion in venture funding over the course of 10 years. Ouch.

More startup capital

Funds!

On the heels of enterprise startup UiPath raising at a $7 billion valuation, the startup’s biggest investor is announcing a new fund to double down on making more investments in Europe. VC firm Accel has closed a $575 million fund — money that it plans to use to back startups in Europe and Israel, investing primarily at the Series A stage in a range of between $5 million and $15 million, reports TechCrunch’s Ingrid Lunden. Plus, take a closer look at Contrary Capital. Part accelerator, part VC fund, Contrary writes small checks to student entrepreneurs and recent college dropouts.

Extra Crunch

Our paying subscribers are in for a treat this week. Our in-house venture capital expert Danny Crichton wrote down some thoughts on Uber and Lyft’s investment bankers. Here’s a snippet: “Startup CEOs heading to the public markets have a love/hate relationship with their investment bankers. On one hand, they are helpful in introducing a company to a wide range of asset managers who will hopefully hold their company’s stock for the long term, reducing price volatility and by extension, employee churn. On the other hand, they are flagrantly expensive, costing millions of dollars in underwriting fees and related expenses…”

Read the full story here and sign up for Extra Crunch here.

#Equitypod

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I chat about the notable venture rounds of the week, CrowdStrike’s IPO and more of this week’s headlines.

Want more TechCrunch newsletters? Sign up here.

‘Crypto exchange’ Goxtrade caught using other people’s photos on its staff page

Alleged cryptocurrency exchange Goxtrade bills itself as a “trusted platform for trading bitcoins,” but its staff page is filled with photos of people of pulled seemingly at random from the internet.

The alleged exchange, which claimed to debut in 2017 yet its website is only a little more than a week old, used photos taken from social media profiles and other company websites not associated with the company.

Bizarrely, the alleged exchange didn’t bother to change all of the names of the people whose photos it used.

Amber Baldet, co-founder of Clovyr, a prominent figure in the blockchain community, and listed in Fortune’s ’40 Under 40′, was one of the people whose name and photos appeared on the site.

“Fraud alert: I am not a developer at Goxtrade and probably their entire business is a lie,” she tweeted Friday.

Nearly all of the names are accurate but have no connection to the site. (Image: TechCrunch)

Goxtrade claims to be an exchange that lets users “receive, send and trade cryptocurrency.” After we created an account and signed in, it’s not clear if the site even works. But the online chat room has hundreds of messages of users trying to trade their cryptocurrencies. The site’s name appears to associate closely with Mt. Gox, a failed cryptocurrency exchange that collapsed after it was hacked. At its 2014 peak, the exchange handled more than 70 percent of all bitcoin transactions. More than $450 million in bitcoins were stolen in the apparent breach.

Baldet isn’t the only person wrongly associated with the suspect site.

TechCrunch has confirmed the other photos on the site belong to other people seemingly chosen at random — including a claims specialist in Illinois, a lawyer in Germany, and an operations manager in Melbourne.

Another person whose photo was used without permission is Tom Blomfield, chief executive of digital bank Monzo. In a tweet, Blomfield — who was listed on the alleged exchange as “Arnold Blomfield” — said his legal team has filed complaints with the site’s hosts.

But things get weirder than just stolen staff photos.

Hours after the site was first flagged, Cloudflare now warns users that the alleged exchange is a suspected phishing site. (Image: TechCrunch)

GoxTrade lists its registered address as Heron Tower, one of the new skyscrapers in London. We checked the listings and there’s no company listed in the building of the same name. There’s also no mention of Goxtrade in the U.K.’s registry of companies and businesses. When we checked its listed registered number per its terms and conditions page, the listing points to an entirely unrelated clothing company in Birmingham.

Later in the day, networking giant Cloudflare, which provides its service, flagged the site as a phishing site.

We reached out to Goxtrade by email prior to publication but did not hear back. When we checked, Goxtrade’s mail records was pointing to an email address run by Yandex, a Russian internet company.

It’s not the first time a cryptocurrency startup has been called into question for using other people’s photos on their staff pages. After raising more than $830,000, Miroskii was caught listing actor Ryan Gosling as one of its graphic designers. Almost every photo later transpired to have been lifted from another source. The company later claimed it was hacked.

Cryptocurrency-related scams are not rare. Many have taken what they’ve raised and gone dark, never to be seen again. We’ve covered a fair number here on TechCrunch, including a massive $660 million scam from 2018.

A fair warning with Goxtrade: all signs seem to point to yet another scam.

Read more:

Pinterest delivers first earnings report as a public company

Pinterest (NYSE: PINS) shared impressive first-quarter financials on Thursday after the closing bell in what was its first earnings report as a public company.

The digital pinboard went public in April, rising 25 percent during its first day trading on the New York Stock Exchange. Pinterest’s public market performance has continued to stay in the green, closing up about 8 percent Thursday at nearly $31 per share for a market cap of $16.7 billion.

The company, led by co-founder and chief executive officer Ben Silbermann, posted revenues of $202 million on losses of $41.4 million for the three months ending March 31, 2019. This surpassed Wall Street’s revenue estimates of about $200 million in Q1 revenue and represents significant growth from last year’s Q1 revenues of $131 million. Losses, however, came in slightly higher than the expected adjusted loss of 11 cents per share at 32 cents per share.

“The IPO was a significant milestone, but our focus at Pinterest hasn’t changed,” Silbermann said in a statement. “We want to help people discover inspiring ideas for every aspect of their lives, from fashion and home decor to travel and fitness. Our success can be seen in our Q1 results, and we’re excited to continue to grow our reach and impact in the years to come.”

Pinterest in April sold 75 million Class A shares in an IPO that raised $1.4 billion. The IPO gave the company a fully diluted market cap of $12.6 billion, a figure slightly larger than its Series H valuation of $12.3 billion. This was amid concerns the company would see a slighter smaller valuation upon its IPO and gain the unseemly title of “undercorn.”

Pinterest previously disclosed revenues of $755.9 million in the year ending December 31, 2018, up from $472.8 million in 2017. Losses, meanwhile, shrank to $62.9 million last year from $130 million in 2017. For the full year 2019, Pinterest, expected to reach profitability by 2021, predicts full-year revenues of between $1.05 billion and $1.08 billion, up from $755.9 million in 2018.

Pinterest post-IPO performance and earnings report comes in stark contrast to both Lyft and Uber’s treatment on their respective stock exchanges. Lyft, for its part, has fallen since its IPO despite an initial pop of 21 percent. In its first-ever earnings report as a public company, released last week, posted first-quarter revenues of $776 million on losses of $1.14 billion, including $894 million of stock-based compensation and related payroll tax expenses. The company’s revenues surpassed Wall Street estimates of $740 million while losses came in much higher as a result of IPO-related expenses.

Uber suffered through a catastrophic IPO last week only to continue falling in the days since. The ride-hailing giant was previously valued at $72 billion by venture capitalists on the private market. It priced its stock at $45 a share for an $82.4 billion valuation last week. The company closed Thursday trading at about $43 per share for a market cap of $72.5 billion.

Pinterest’s disruptive digital advertising business appears to be more attractive to Wall Street than ride-hailing however. In addition to delivering an attractive earnings report, Pinterest displayed user growth. The company now counts 291 million monthly active users, a 22 percent increase from Q1 2018. Pinterest continues to gain global users, growing an impressive 29 percent in the last year. The U.S., however, remains the company’s core market where average revenue per user grew 41 percent to $2.25.

Pinterest was undeterred by skeptics, who predicted its nice-guy image and history of slower growth would make for a poor performing public company. Today, it’s market cap has surpassed Lyft, which was worth billions more before the two companies transitioned into the public markets.

How long Pinterest can stay in the green remains to be seen.

Vertex Ventures hits $230M first close on new fund for Southeast Asia and India

Tis the season to be raising in India and Southeast Asia. Hot on the heels of new funds from Strive and Jungle Ventures, so Singapore’s Vertex Ventures, a VC backed by sovereign wealth fund Temasek, today announced a first close of $230 million for its newest fund, the firm’s fourth to date.

Vertex raised $210 million for its previous fund two years ago, and this new vehicle is expected to make a final close over the coming few months with more capital expected to roll in. If you care about numbers, this fund may be the largest dedicated to Southeast Asia although pedants would point out that the Vertex allocation also includes a focus on India, echoing the trend of funds bridging the two regions. There are also Singapore-based global funds that have raised more, for example, B Capital from Facebook co-founder Eduardo Saverin.

Back to Vertex, it’s worth recalling that the firm’s third fund was its first to raise from outside investors — having previously taken capital from parent Temasek. Managing partner Chua Kee Lock told Bloomberg that most of those LPs signed on for fund four including Taiwan-based Cathay Life Insurance. Vertex said in a press release that it welcomed some new backers, but it did not provide names.

The firm has offices in Singapore, Jakarta and Bangalore and its most prominent investments include ride-hailing giant Grab, fintech startup InstaRem, IP platform PatSnap and Vision Fund-backed kids e-commerce firm FirstCry. Some of its more recent portfolio additions are Warung Pintar — which is digitizing Indonesia’s street kiosk vendors — Binance — which Vertex backed for its Singapore entity — and Thailand-based digital insurance play Sunday.

One differentiator that Vertex offers in Southeast Asia and India, beyond its ties to Temasek, is that there are connections with five other Vertex funds worldwide. Those include a new global growth fund, and others dedicated to global healthcare as well as startups in Israel and the U.S.

Others VCs operating in Southeast Asia’s Series A/B+ bracket include Jungle Ventures, which just hit first close on a new fund aimed at $220 million, Openspace Ventures, which closed a $135 million fund earlier this year, Sequoia India and Southeast Asia, which raised $695 million last year, Golden Gate Ventures, which has a third fund of $100 million, and Insignia Ventures, which raised $120 million for its maiden fund.

Growth funds are also increasingly sprouting up. Early stage investor East Ventures teamed up with Yahoo Japan and SMDV to launch a $150 million vehicle, while Golden Gate Ventures partnered with anchor LP Hanwha to raise a $200 million growth fund.

Bitcoin has surged above $8,000 and theories around why abound

Bitcoin is now trading at around $8,130, up a whopping 60.84 percent over the past month, with the price surging $3,086.14 over the period.

The cryptocurrency’s meteoric rise is reminiscent of its rocketing growth in the latter half of 2017, when prices reached over $18,400 on the back of buoyant capital markets, rampant speculation, and a turbulent political climate in Northern Asia spurred by saber rattling between President Donald Trump and North Korea’s dictator, Kim Jong-un.

While geopolitical tension is once again gripping the market (thanks to the ongoing trade war between the U.S. and China), that may only be one factor contributing to Bitcoin’s surge.

“Anticipation of the upcoming supply shock [of new BTC introduced via mining] may be creating upward pressure on the price of Bitcoin,” wrote Alyse Killeen, a partner at the investment and advisory firm Stillmark, in an email. “Bitcoin is introduced to the market when the Bitcoin protocol rewards miners who validate blockchain transactions. Specifically, the Bitcoin protocol gives BTC to miners for adding blocks to the blockchain. Today, miners earn 12.5 BTC for adding a new block that is accepted by the network. In May 2020, the time of the next ‘halvening‘, that reward will be reduced to 6.25 BTC, thereby reducing the total number of BTC introduced to the market on a daily basis.”

Killeen also noted that Bitcoin is inherently more valuable today than it was at the same time last year. More Americans can access Bitcoin through apps like Cash and Robinhood, and TD Ameritrade’s BTC contracts and (soon) eTrade.

Technology advances are also making Bitcoin more useful and more secure, Killeen wrote. The development of the Lightning Network is proceeding and creating a new application ecosystem, while the Blockstream Satellite network is creating redundancies in blockchain availability.

In fact, the number of businesses that take Bitcoin or other cryptocurrencies expanded exponentially yesterday thanks to an agreement between the U.S. dollar-pegged stablecoin purveyor Gemini (owned by the Winkelvoss twins of Facebook and Social Network fame) and the payment network Flexa, whose technology is undergirded by cryptocurrencies.

Using Gemini’s exchange and clearing house and Flexa’s transaction technology most of the stores an American consumer encounters in their trip to the mall now accept Bitcoin or other cryptocurrencies as payments.

That adoption doesn’t explain the bump in Bitcoin prices entirely. And skeptics of digital cryptocurrencies argue that there could be a simpler explanation for the rise in digital currencies right now — good old fashioned price manipulation.

As crypto-skeptic David Gerard wrote in this blog post yesterday:

It’s because the price of Bitcoin is a proxy for margin trading — and rather than investing in the commodity itself, you can make more money by manipulating this thin and ill-regulated market to burn the margin traders.

This also allows the large holders — the “whales,” and the exchanges themselves — to cash out to whatever little actual-money US dollars are available, in a trading system where the liquidity is mostly fake dollars called “tethers.”

Willy Woo explains how short squeezes work in crypto. This is a pattern we see over and over:

1) When the market is majority short, there’s too much money to be had to allow them to win.

2) Whales keep buying up the market until the shorts get liquidated.

3) At liquidation the short seller has to buy back at market price.

4) A tidal wave of buys cascade through the orderbooks, a chain reaction, the price goes vertical.

5) Whale payday. The whales that bought up the market sheparding the price up now dump their positions at profit.

6) Blow-off. The price comes down to its organic levels.

Other investors, like Travis Scher at the Digital Currency Group think that it’s as simple as a new class of investor looking at Bitcoin as a new store of value and a haven for investors looking to escape volatile public markets.

“I spend very little time trying to understand or explain short-term crypto price movements, as the price and the fundamentals often seem to move in diametrically opposed directions. So all I can say with certainty is that there are more buyers than sellers in recent months,” Scher wrote in an email. “But in this case, I do think that one factor driving the rally is that the narrative around Bitcoin as digital gold is growing. We fully expect Bitcoin to replace gold as the leading non-government controlled store of value over the coming decade.”

InnoVen Capital, one of Asia’s most prominent venture debt firms, adds $200M more to its kitty

Founders might not believe it, but managing a venture capital firm isn’t all that dissimilar to a startup. Case in point today: InnoVen Capital, one of Asia’s most prominent venture debt firms, has pulled in $200 million in new money to continue its expansion in the region.

The money comes from InnoVen’s two shareholders — Singapore sovereign fund Temasek and Singapore’s UOB — each of which has added $100 million in additional firepower for the fund, which is popularising debt-based financing within Asia’s startup ecosystems.

The organization came to be in 2015 when Temasek acquired the Indian ‘branch’ of Silicon Valley Bank expressly to offer differentiated financing to startups. The spinout was named InnoVen and it quickly expanded beyond India with the opening of an office in Singapore in 2016 and then an outpost in Beijing in early 2018.

The firm operates without a specific fund size unlike many other investors, but already there are some numbers to indicate its growing role in Asia.

That regional play is still in its early days, but already the business has deployed over $500 million in financing to more than 200 companies, according to Ashish Sharma, the former head of GE Capital India who leads InnoVen’s India business.

The fund operates at Series A and beyond and Sharma told TechCrunch that its investment levels have sped up over the past two to three years, thanks in particular to the addition of offices in Southeast Asia and China.

Recent deals from the fund have included investments in Moglix, Carsome, RedDoorz, Awfis and even a stealthy startup, Indonesia-based logistics venture Kargo which included debt within its first round of funding. Already, the Chinese arm has accrued 30 deals in a little over a year, and some of the biggest names backed across the region include Vision Fund company OYO and Naspers investments Swiggy, which recently raised $1 billion, and Byju’s.

Yet despite InnoVen’s increased profile, there remains confusion on the role of venture debt in Asia. Anecdotally, I’ve heard many misguided opinions from so-called venture capital-focused reporters — and not just in Asia — who see debt-based investment as a ‘last resort’ for companies. Its addition in a round is a tell-tell sign of a struggling business, they claim.

That’s completely wrong, according to InnoVen’s Sharma.

“It doesn’t come in from a position of weakness, that’s a big misconception,” he explained to TechCrunch in an interview. “In fact, venture debt is not available to companies which are in trouble. Most companies that raise venture debt do so from a position of strength.”

“They’ll say ‘We’re raising $100 million, let’s lay in $20 million of venture debt to optimize the dilution,'” Sharma added. “We’ve helped some very large companies use venture debt to get to the next level.”

Ashish Sharma leads InnoVen Capital’s business in India [Image via InnoVen Capital]

Ambitious growth story? Check.

A business that’s misunderstood by many? Check.

Who said running a VC firm isn’t like running a startup?

Seed investor Gree Ventures makes first close of new $130M fund — and rebrands to Strive

There’s big news for one of India and Southeast Asia’s longest-running early-stage investors after Gree Ventures, the fund attached to Japanese gaming firm Gree, announced the first close of its third fund, which is targeted at $130 million.

Gree has been a fixture in Southeast Asia since 2012, but now the firm is rebranding to Strive (or “STRIVE” to quote the press release) for the new fund. Rebrandings often seem token, but, in this case, it makes a lot of sense to stop being called Gree (“GREE”) because the company is just one LP of many.

“People often confuse us as a single LP fund,” Nikhil Kapur — who has been promoted to partner — told TechCrunch in an interview. “But we’re quite independent from Gree, plus we’re not a corporate fund and we’re not investing in gaming.”

Indeed, in this case, the fund is talking to non-Japan-based LPs for the first time over potential participation. Confirmed LPs include past backers SME Support JAPAN — which is part of the Ministry of Economy, Trade and Industry of Japan — Gree itself and members of the Mizuho Financial Group. Opening the doors to prospective LPs in Southeast Asia is about adding “more local networks in these markets,” Kapur explained.

Those details, it is very much business as usual for Strive, which is putting the focus on B2B. Kapur said that 60-70 percent of past investments have tended to be on B2B deals, but now fund three is — for the first time — almost entirely dedicated to that segment.

Southeast Asia has seen some seed investors move further down the chain — Jungle Ventures’ new fund is targeting a $230 million final close, while Golden Gate Ventures’ third fund is $150 million while it also has a ‘growth fund’ aimed at $200 million — but Strive is sticking to early stage.

As seed funds go, $130 million is a lot but there’s plenty of nuance to that figure — it won’t all go to early-stage checks.

The fund is split across India, Southeast Asia and Japan — with around half of that allocation estimated for deals outside of Japan. That leaves around $25 million for ‘first checks.’ Kapur said that the outlined goal is to find 20 startups to back, and then double down on them with that follow-on capital. Interestingly, he said that there’s no hard allocation between the three focus regions and follow-on capital is allocated freely to those companies which are performing well and ready to grow, irrespective of geography.

The Strive team

Looking more closely at India and Southeast Asia, Kapur and investment manager Ajith Isaac pointed to increased synergies between the two regions. Indeed, large Southeast Asian players like Grab and Go-Jek have tapped India’s talent pool and located their R&D centers and engineering teams in the country, while Indian startups area increasingly foraying into Southeast Asia for market expansion.

“We see these regions not remaining separate in the near future… [and] becoming very intertwined,” Kapur said, pointing out that in venture capital firms like Accel and Lightspeed and following Sequoia India and investing directly in startups in Southeast Asia.

“The region will become very much interlocked and there’s a gap in people who can bridge it… that’s where we see a differentiated value-add on our side,” he added.

Southeast Asia itself has matured immensely since the Gree fund’s early days, but Kapur and Isaac — investment manager Samir Chaibi is the third member on the non-Japan side of the fund — maintain that there’s still “a gap in terms of institutional capital on seed stage” in some verticals where angel investors are helping new ventures get off the ground with first checks and early backing. That’s where the new Strive fund is keen to make its mark.

The fund, which has traditionally been very lean in terms of personnel, will also bulk up its own numbers. Kapur said he is hiring local teams in India and Indonesia with a viewing to growing the non-Japanese headcount to six people by the end of the year.

Uber’s first day as a public company didn’t go so well

Ouch. Yikes. Oof. Sigh.

Those are some of the friendlier phrases I imagine came out of the mouths of bankers, investors, executives and really anyone who has been paying close attention to Uber’s road to the stock markets today when the company debuted on the New York Stock Exchange below its initial public offering price.

The ride-hailing business (NYSE: UBER), previously valued at $72 billion by venture capitalists, priced its stock at $45 apiece for a valuation of $82.4 billion on Thursday. It began trading this morning at $42 apiece only to close even lower at $41.57 or down 7.6 percent from its IPO price.

Still, the IPO was successful enough for Uber. The business now has $8.1 billion on its balance sheet to invest in growth and ideally, transform into a profitable business.

Anyone that expected Uber to climb past $100 billion at its IPO is surely disappointed. And those who projected a valuation of some $120 billion, well they’re probably feeling pretty dumb. Nonetheless, Uber’s new market cap makes its exit one of the most valuable in history and represents a landmark event for tech, mobility and the gig economy at large.

Where the stock will go from here, who knows. Lyft, as we’ve observed, has taken quite a hit since it completed an IPO in March. The Uber competitor is currently trading at a higher price than Uber: $51 per share with a market cap of about $14.6 billion. Its stock has fallen all week long, however, after the company posted losses of more than $1 billion in the first quarter of 2019.

Binance says more than $40 million in bitcoin stolen in ‘large scale’ hack

Cryptocurrency exchange Binance has confirmed a “large scale” data breach, in which hackers stole more than $40 million in cryptocurrency

In a statement, the company said hackers stole API keys, two-factor codes and other information in the attack.

Binance traced the cryptocurrency theft — more than 7,000 bitcoins at the time of writing — to a single wallet after the hackers stole the contents of the company’s bitcoin hot wallet. Binance, the world’s largest cryptocurrency exchange by volume, said the theft impacted about 2 percent of its total bitcoin holdings.

“All of our other wallets are secure and unharmed,” said the statement.

“The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time,” the statement read. “The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed.”

“Once executed, the withdrawal triggered various alarms in our system. We stopped all withdrawals immediately after that,” the statement said.

Binance said its secure asset fund for users (SAFU) will cover user losses.

Until the company’s investigation is complete, deposits and withdrawals will remain suspended but trading will remain open.

Binance chief executive Changpeng Zhao is set to hold a Twitter ask-me-anything session in the coming hours. TechCrunch will bring you more once we have it.

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