Zulily, Chegg IPOs Follow Twitter In Test Of Tech Exit Market
The buzz has not yet died down on the much-hyped Twitter IPO, and two more consumer Internet IPOs this week jumped into the public markets hoping to follow in its wake. Startups, investors and the tech world will be watching these two offerings to see if enthusiasm from Twitter rubs off on other initial public offerings and the exit market in general.
When Facebook’s much-anticipated IPO cratered last year, the IPO window temporarily clamped shut, particularly for consumer Internet companies. So many are watching to see if the relatively successful Twitter IPO will open up a window for more companies to enter the public markets. So far, interest in new growth companies (e.g. Zulily) looks to be high. But Chegg struggled in its initial trading.
Zulily, an ecommerce site for babies and moms, raised $263 million in its IPO, pricing 11.5 million shares at $22 per share. Seattle-based Zulily raised $140 million in venture capital from Maveron, August Capital, Andreessen Horowitz, Trinity Ventures, Meritech Capital partners and others. Shares (NASDAQ: ZU) opened at $39 this morning and were trading up 69% to $37.19 in late trading Friday.
Meanwhile, Chegg, an online textbook rental company, priced its IPO at $12.50 per share, then opened at $11 per share. But shares fell 22.6% in its fist day of trading on the NYSE . Santa Clara, Calif.-based Chegg had raised close to $200 million from Foundation Capital, Gabriel Ventures, Insight Venture Partners and Kleiner Perkins Caufield & Byers. Shares were up 4.28% to $9.26 in late Friday trading.
In other exit news this week: two interesting non-tech buyers scooped up tech startups:
MapMyFitness was acquired by sports apparel company Under Armour for about $150 million in the hot wearable technology space. Austin-based MapMyFitness had raised $20 million from Austin Ventures, The Running Co. and others.
TouristEye a seed-funded mobile trip planning app, was acquired by Lonely Planet, publisher of the ubiquitous travel books. TouristEye had raised $500,000 from 500 Startups, Plug and Play Innovation Center and angels.
Other notable deals this week:
Traffiq, a seven-year-old digital media planning and buying company, was acquired by Talus Holdings. Traffiq had raised $18 million from Grotech Ventures, Court Square Ventures and Tribeca Venture Partners.
Attachments.me was acquired by Yesware, in its first acquisition. The five-person Attachments.me team is shutting down the startup. It had raised $2.5 million from Foundry Group.
Late last week, news broke that education startup Kno was acquired by Intel after raising more nearly $100 million in venture equity and debt from Andreessen Horowitz, First Round Capital, Intel Capital, Floodgate and others. According to GigaOm, Intel paid just $15 million for the Santa Clara, Calif. startup. The company originally began selling an educational tablet device, but eventually shifted to offering a digital textbook app.
Curbed, a New York-based Web media company and owner of websites Curbed, Eater and Racked, was acquired by Vox Media. Numerous reports pegged the value of the deal at between $20 million and $30 million. Vox has a number of properties including tech site The Verge, sports site SB Nation and has raised upwards of $60 million from Accel, Allen & Co. and Ted Leonsis.
Breaking: Merger and acquisition scoops are intentionally leaked.