Financial Services

Is it too late to squeeze Lemonade?

Demand for the Lemonade (LMND) IPO has been very strong. The company increased the price range from $23-26 to $26-28 but experienced IPO investors know they will be leaving money on the table and the shares are likely to open up sharply higher from the IPO price. Lemonade also fits into a broad theme of…

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Bill.com aims to streamline the SMB back-office

Bill.com (NYSE: BILL) is an online platform for small businesses to process their handle invoices, payments and approvals digitally – improving efficiency and automation. Demand for the deal is high so underwriters have increased the proposed range to $19-21 from the prior $16-18. Solution & Positioning It’s a significant problem for most businesses and while…

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EverQuote or EverCrap?

Talk about marketing an IPO! The EverQuote ($EVER) IPO roadshow leaves you with the impression that this is a technology company that have made it easy for consumers to get insurance quotes in an online marketplace and buy coverage online. Their presentation is all about their large technology team and the incredible problem they have…

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The Astonishing Avalara

After filing for an IPO with a $19 to $21 range, Avalara ($AVLR) increased the range to $21 to $23 and then priced above-the-range last night at $24. It’s not surprising because the story behind this enterprise cloud software company is a great one. It’s “astonishing” because it comes in an area that’s typically a…

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Zuora Strives for Sex in Billing Software

Enterprise subscription management software is pretty boring. But the world is shifting from purchase to subscription. Every company now wants “continuous customer relationships” and consumers love subscriptions. In many ways, the subscription economy isn’t new. Even cars were often leased versus bought but they were still treated as an asset. Companies like Zipcar took it…

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Cardlytics Gets Banks into the Online Ad Game

You know it had to come eventually – banks know what you buy with your debit and credit cards and that’s information that can be sold! It’s a bit sad as ads will intrude into yet another part of your routine. And again you didn’t ask for it, but you’ll be getting it all the…

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Talend Software IPO

Talend Software (TLND) priced their IPO above the range at $18. The company provides data integration software to enterprises who continue to struggle to manage and leverage their growing pile of data – big data, small data, cloud data, etc. Talend fills a gap in the market for investors after both Informatica and Tibco were…

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BATS IPO works this time

Last night BATS priced a greater than expected number of shares at the high end of their IPO price range – $19/share. After a very slow market so far in 2016 the ice has been broken by a fairly large at over $250M with six big banks running books and five co-managers bringing the deal….

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Measuring Square

Square (NYSE: SQ) is coming public as a $1B revenue company with quite a few moving parts. There’s the negative margin Starbucks business which is going away, plus the “ratchet” provision whereby prior investors will have their number of shares adjusted based on the IPO price to preserve their prospective returns. We suspect it will…

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The Problem with PayPal

There’s a big gap between the PayPal (PYPL) story/investor slide deck and market reality. As an investor we like it – hits all the right notes and management has all the right answers. But as a user we scratch our head and wonder where all the innovation is. (PayPal was very innovative in the early…

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