In the same week that Amazon is holding its big AWS confab, Google is also announcing a move to raise its own enterprise game with Google Cloud. Today the company announced that it is acquiring Actifio, a data management company that helps companies with data continuity to be better prepared in the event of a security breach or other need for disaster recovery. The deal squares Google up as a competitor against the likes of Rubrik, another big player in data continuity.
The terms of the deal were not disclosed in the announcement; we’re looking and will update as we learn more. Notably, when the company was valued at over $1 billion in a funding round back in 2014, it had said it was preparing for an IPO (which never happened). PitchBook data estimated its value at $1.3 billion in 2018, but earlier this year it appeared to be raising money at about a 60% discount to its recent valuation, according to data provided to us by Prime Unicorn Index.
It had raised around $461 million, with investors including Andreessen Horowitz, TCV, Tiger, 83 North, and more.
With Actifio, Google is moving into what is one of the key investment areas for enterprises in recent years. The growth of increasingly sophisticated security breaches, coupled with stronger data protection regulation, has given a new priority to the task of holding and using business data more responsibly, and business continuity is a cornerstone of that.
Google describes the startup as as a “leader in backup and disaster recovery” providing virtual copies of data that can be managed and updated for storage, testing, and more. The fact that it covers data in a number of environments — including SAP HANA, Oracle, Microsoft SQL Server, PostgreSQL, and MySQL, virtual machines (VMs) in VMware, Hyper-V, physical servers, and of course Google Compute Engine — means that it also gives Google a strong play to work with companies in hybrid and multi-vendor environments rather than just all-Google shops.
“We know that customers have many options when it comes to cloud solutions, including backup and DR, and the acquisition of Actifio will help us to better serve enterprises as they deploy and manage business-critical workloads, including in hybrid scenarios,” writes Brad Calder, VP, engineering, in the blog post. :In addition, we are committed to supporting our backup and DR technology and channel partner ecosystem, providing customers with a variety of options so they can choose the solution that best fits their needs.”
The company will join Google Cloud.
“We’re excited to join Google Cloud and build on the success we’ve had as partners over the past four years,” said Ash Ashutosh, CEO at Actifio, in a statement. “Backup and recovery is essential to enterprise cloud adoption and, together with Google Cloud, we are well-positioned to serve the needs of data-driven customers across industries.”
On the heels of news that DoorDash is targeting an initial IPO valuation up to $27 billion, C3.ai also dropped a new S-1 filing detailing a first-draft guess of what the richly valued company might be worth after its debut.
C3.ai posted an initial IPO price range of $31 to $34 per share, with the company anticipating a sale of 15.5 million shares at that price. The enterprise-focused artificial intelligence company is also selling $100 million of stock at its IPO price to Spring Creek Capital, and another $50 million to Microsoft at the same terms. And there are 2.325 million shares reserved for its underwriters as well.
The total tally of shares that C3.ai will have outstanding after its IPO bloc is sold, Spring Creek and Microsoft buy in, and its underwriters take up their option, is 99,216,958. At the extremes of its initial IPO price range, the company would be worth between $3.08 billion and $3.37 billion using that share count.
Those numbers decline by around $70 and $80 million, respectively, if the underwriters do not purchase their option.
So is the IPO a win for the company at those prices? And is it a win for all C3.ai investors? Amazingly enough, it feels like the answers are yes and no. Let’s explore why.
If we just look at C3.ai’s revenue history in chunks, you can argue a growth story for the company; that it grew from $73.8 million in the the two quarters of 2019 ending July 31, to $81.8 million in revenue during the same portion of 2020. That’s growth of just under 11% on a year-over-year basis. Not great, but positive.
The venture capital industry’s comeback from fear in Q1 and parts of Q2 to Q3 greed is worth understanding. To get our hands around what happened to private capital in 2020, we’ve taken looks into both the United States’ VC scene and the global picture this week.
Catching you up, there was lots of private money available for startups in the third quarter, with the money tilting toward later-stage rounds.
Late-stage rounds are bigger than early-stage rounds, so they take up more dollars individually. But Q3 2020 was a standout period for how high late-stage money stacked up compared to cash available to younger startups.
For example, according to CB Insights data, 54% of all venture capital money invested in the United States in the third quarter was part of rounds that were $100 million or more. That worked out to 88 rounds — a historical record — worth $19.8 billion.
The other 1,373 venture capital deals in the United States during Q3 had to split the remaining 46% of the money.
While the broader domestic and global venture capital scenes showed signs of life — dollars invested in Europe and Asia rose, American seed deal volume perked back up, that sort of thing — it’s the late-stage data that I can’t shake.
To my non-American friends, the data we have available is focused on the United States, so we’ll have to examine the late-stage dollar boom through a domestic lens. The general points should apply broadly, and we’ll always do our best to keep our perspective broad.
Remember back in March when the VC game was done for the year, checkbooks were snapping shut and startup layoffs led the headlines? So much for all that. Q3’s venture capital numbers are in and they are anything but weak.
In retrospect, the Q2 VC slowdown looks more like a short-lived recharge ahead of a big push in Q3 than anything existential. We can see this today through the lens of data concerning what happened after June concluded and we moved into Q3.
I want to dig into the data and pull out most important data points for you. We’ll get you informed and out the door in around 900 words.
If you want a more global look at the venture capital world in Q3, don’t worry. We’re doing that tomorrow right here at The Exchange. Ready? This should be both fun and informative. Let’s go!
To get a clear look at the U.S. venture capital market, we’ll start from the top down. So, the biggest numbers first, followed by increasingly narrow slices of data so we can drill down into smaller startups.
First, the top-line numbers:
What to make of all this information? Simple: Q3 2020 U.S.-based startup venture capital dollar volume was very strong, with deal counts coming in slightly weaker.
This means that we saw fewer, larger deals in the quarter on average, right? Let’s see: