Etsy aims high with IPO. Big deal hits big Pharama – March 5th, 2015

Etsy aims high with IPO. Big deal hits big Pharama – March 5th, 2015

Craft marketplace Etsy just filed for an IPO

Another popular startup is about to hit the ground running as they announced that they have filed for an IPO. Etsy is a Brooklyn-based online craft marketplace that generated nearly $200 million in revenue last year, a 56.4% leap from the previous year. Investors are getting excited, but are still cautious as the company moves ahead.

It will be listed on the Nasdaq under the symbol ETSY. Its $100 million fundraising target is just a placeholder and the company could be raising much more (Bloomberg reported in January that it would raise about $300 million).  

About 55% of Etsy’s revenue comes from charging its 1.4 million active sellers $0.20 to list a single item for four months, and then 3.5% of the value of the sale if an item sells. It’s “seller services,” like direct checkout, promoted listings, and shipping, labels, contribute 42.1% of revenue. The rest — which Etsy puts in the “Other” category — comes from fees it receives from a third-party payment processor. 

Source: Bloomberg

Funds Think Warby Parker Is Worth $1 Billion

Have you heard of Warby Parker? Well, some of the country’s biggest funds think you should. Warby Parker Retail Inc. is a low-cost eyeglass frame company who’s styles, and business model are red hot these days. Now, the company is going for some serious funding. And if early indications are correct, they may be the next company to join the $1 billion valuation club.

The company has been approached by funds looking to buy a stake, people with knowledge of the matter said. Those potential investors are willing to value Warby Parker at more than $1 billion, said the people, who asked not to be identified discussing private information. At that level, Warby Parker’s valuation would be about double what it received in 2013, the people said.

While Warby Parker isn’t currently holding a formal fundraising process, the demand may precipitate a new financing round that would close quickly, the people said. That interest indicates investors’ willingness to bet on the potential growth — and accept the potential risks — of a startup company in the context of a low-interest-rate environment.

Source: Bloomberg

AbbVie to Pay $21 Billion for Pharmacyclics, Maker of a Promising Cancer Drug

A major deal is in the works within the pharmaceutical industry, and it’s looking like it’s going to be a big buyout. Pharamceutical giant AbbVie is reportedly about to pay $21 billion to develop a critical cancer drug by absorbing CA-based Pharmacyclics. Here are some more details from this major deal.

Under the terms of the deal, AbbVie will pay $261.25 per share in cash and stock. That represents a 13 percent premium to Wednesday’s closing price.

Based in Sunnyvale, Calif., Pharmacyclics focuses on anticancer drugs. Its product is Imbruvica, a pill used to treat certain blood cancers. A one-month treatment can cost $9,000 or more. Pharmacyclics’ revenue was $730 million in 2014, compared with $260 million the previous year.

The acquisition cements a huge financial windfall for Mr. Duggan, the Pharmacyclics chief, who had no experience in pharmaceuticals when he took over the company in 2008, a year in which the stock dipped below $1 a share. It closed on Wednesday at $230.48; Mr. Duggan’s stake is worth about $3.2 billion.

Source: The New York Times

How to Pick the Best Equity Crowdfunding Investment That WORKS

Equity crowdfunding investments are huge these days. They’re flexible, and can be a great way for new investors to get into some great companies with huge future potential. But picking the right investment is never easy, and that’s no different in this case. In one of our latest blog posts, we take a look at some of the best ways to find a fit that works for you.

Picking the right equity crowdfunding investment isn’t an exact science, but there are many ways to help make your decision easier. The first step you need to take is to network with the right companies. In the digital age, this is much easier, but it’s still a critical part of the process that can’t be ignored. Once you’ve found the companies that peak your interest, it’s time to do your homework. Get to know the founders. Get to know their business. And most importantly, ask the right questions. Why are they going the crowdfunding route? What is their plan for sustainability? What is their work history before this company? Remember, equity crowdfunding is a bit of an alternative investement, so thinking out of the box is absolutely essential.

Read more from our blog…

 

 

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