Domestic friends: The confidence in the industry is very big.
Editor’s note: This article is from WeChat public account “PropTech Learning Society” (ID :cv_seal), by Ellie.
After Uber, WeWork, the second-largest technology unicorn of the year, which had been highly anticipated, could not be listed as scheduled.
Under the WeWork prospectus, failure to go public as scheduled means WeWork will not be able to secure a $6 billion credit facility because the precondition for a $6 billion line of credit is that WeWork raises at least $3 billion in the IPO.
According to foreign media reports, the sluggish performance of Uber and Slack after listing has damaged the reputation of Softbank. The current chaos surrounding WeWork’s upcoming listing and its valuation downgrade may cause Softbank’s investment logic to be questioned.
For Softbank, the WeWork IPO valuation will not only damage its image, but also affect the “Vision Fund Phase II” that it is preparing. However, underwriters, including JP Morgan Chase and Goldman Sachs, do not want to see IPOs cancelled. They would rather lower the valuation and give the company a chance to recover later. In this way, they will enjoy a generous commission and will participate in the largest IPO that may still be this century.
What is the investment logic of Softbank in recent years?
Softbank under Sun Zhengyi has almost won the world-renowned Internet Unicorn Company in recent years. Softbank’s play is to increase the valuation of startups by rapid, large-scale (multiple rounds, high amounts) of investment. .
As of the close of 2019/9/9 at US East Time, Uber’s market capitalization was $54.408 billion, Slack’s market capitalization was $13.559 billion, and Uber’s valuation in the primary market reached $72 billion, which is higher than Uber’s current market capitalization. 20% higher.
A WeWork listing plan is postponed
In September, WeWork, which was listed on the market, was repeatedly exposed to negative rumors such as a plunge in valuations and a delay in listing.
According to CNBC’s report last week, WeWork’s target valuation is being significantly reduced. In addition, WeWork has a big next week.