Private equity giveth, and private equity taketh away

Sep 3, 2021

This week, the hosts dive into Apollo's recent acquisition of Verizon Media Group and its implications for workplace dynamics. They discuss Drift's impressive majority exit to Vista Equity Partners, marking a significant milestone in tech ownership. A highlight is Databricks' staggering $38 billion valuation from a recent funding round, raising questions about its IPO plans. The conversation shifts to Hum Capital's innovative approach to startup funding, aiming to reshape Wall Street practices. Lastly, they analyze the recovery of Toast and the challenges faced by Allbirds, illuminating the evolving startup landscape.

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ANECDOTE

TechCrunch Acquired

TechCrunch, including Equity, has been acquired by Apollo, formerly Verizon Media Group.
Hosts Alex and Natasha Moscavenas share their personal reactions and history with Yahoo.

INSIGHT

Drift's Private Equity Deal

Drift's majority exit to Vista Equity Partners for over $1B raises questions about the deal's motivation.
Drift's strong growth and impressive customer base suggest potential competitive pressures.

INSIGHT

Databricks' Massive Round

Databricks raised $1.6B at a $38B valuation, showcasing its rapid growth and appeal to long-term investors.
CEO Ali Ghodsi strategically builds a cap table of patient capital while private, mimicking a public offering.

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Natasha and Alex and Grace and Chris gathered to dig through the week's biggest happenings, including some news of our own. As a note, Equity's Monday episode will be landing next Tuesday, thanks to a national holiday here in the United States. And we have something special planned for Wednesday, so stay tuned.

Ok! Here's the rundown from the show:

Apollo completed its takeover of Verizon Media Group Yahoo: Yep, we have new bosses, and we have feelings about it. But mostly the TechCrunch news was a useful segue to Drift's majority exit to Vista Equity Partners at a price that made the Boston-based startup a unicorn. Terms were not disclosed, sadly, but Drift's revenues looked strong going into the transaction. That left us with questions.
Then we chatted about Databricks, which raised a small country's GDP in a single funding round this week, valuing the data-and-ML company at a staggering $38 billion valuation. Why isn't Databricks going public? Because it doesn't have to, mostly.
Hum Capital believes the future of startup fundraising requires a return to old school Wall Street. The startup helps founders and investors navigate the overly fragmented market these days, and just raised millions to scale this service.
Form there we dug into two IPOs, including the very interesting story of Toast, another Boston-based company, and AllBirds. The AllBirds offering was less exciting from a numerical perspective, though Natasha and Alex both like their shoes from the company.
And to close out, we discussed how Compound Foods wants to save the planet by making coffee sans beans. Which we are willing to try as soon as we can.

That's a wrap from us for the week! Keep your head atop your shoulders and have a great weekend!

Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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