What market selloff?
Despite last week’s market declines, two big IPOs are rolling ahead this week, with Snowflake and JFrog both boosting their IPO price ranges this morning. The jump in expected pricing means each IPO will likely raise more capital, valuing the firms more richly than their initial ranges made clear.
Snowflake’s first IPO range valued it comfortably north of $ 24 billion and its IPO detailed that both Berkshire Hathaway and Salesforce Ventures were going to pour capital into the big-data company. JFrog’s developer-derived profits and strong growth gave it a valuation of around $ 3 billion, far above its final private price.
Those figures are are now passé. This morning, let’s quickly calculate new valuations for both companies and dig into why they are managing to attract such strong investor demand.
JFrog and Snowflake’s new IPO price intervals
Starting with JFrog, the company’s preceding IPO price interval of $ 33 to $ 37 per share valued it between $ 2.92 billion to $ 3.28 billion, not counting equity reserved for its underwriting banks. The company is now targeting a $ 39 to $ 41 per-share price range, a steep gain from its preceding target.
JFrog still intends to sell eight million shares, giving the company a $ 312 million to $ 328 million gross raise, before counting other shares that are being sold by existing shareholders and reserved equity for underwriters.
On this morning’s WJR Business Beat, Jeff discusses a continuing trend in online purchasing. A recent study from GoDaddy shows that in states that have begun reopening their brick-and-mortar stores, the majority of consumers are still choosing to make their purchases online rather than in-store.
Tune in to the WJR Business Beat, below, to hear Jeff discuss the study further:
StartupNation exclusive discounts and savings on Dell products and accessories: Learn more here
Tune in to News/Talk 760 AM WJR weekday mornings at 7:11 a.m. for the WJR Business Beat. Listeners outside of the Detroit area can listen live HERE.
Are you an entrepreneur with a great story to share? If so, contact us at firstname.lastname@example.org and we’ll feature you on an upcoming segment of the WJR Business Beat!
WJR Business Beat Transcript
Good morning, Paul.
As a sign of the long-lasting impact the COVID-19 crisis will have on business well into the future, here’s a study from GoDaddy that shows that even with the reopening of more brick-and-mortar locations to shop and dine, the action is still online. If anyone thought the acceleration of conducting business online was temporary, better think again.
The recent GoDaddy study examined the performance of GoDaddy customers across 15 states and found that overall, online orders in the month of June were up 66 percent higher than in March and 97 percent higher than in February, doubling the amount of sales online versus brick-and-mortar.
Amazing, suggesting that in states that have begun reopening their brick-and-mortar stores, the majority of consumers are still choosing to make their purchases online rather than in-store. And of course, this shouldn’t come as any surprise to any of us: with the increased quality in the online purchasing journey, the efficiencies and convenience involved, and of course not to mention that many of us don’t want to take any unnecessary risk of exposure by going to a brick-and-mortar location, all combine to make online purchasing a choice that is here to stay.
So, if you’re thinking about starting a business or growing your existing one, get yourself set up online as a primary way of doing business well into the future and hone your online marketing the skills so you can beat the competition to the business.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.
The post WJR Business Beat with Jeff Sloan: Online Purchasing is Here to Stay (Episode 107) appeared first on StartupNation.