Manhattan Venture Partners

#ManhattanVentureMonday @Airbnb has just released a draft of their S-1 registration statement in anticipation of its IPO before the end of 2020. Manhattan Venture Research has reviewed this filing, and we are pleased to present their views in their newly published Airbnb S-1 Report. In summary, there were no material surprises in the filing. The operational and financial details confirmed the resiliency of the company in the face of pandemic-induced shutdown of the... travel and tourism industry. The company adjusted to the challenges by trimming its marketing and labor costs, increased its liquidity position with debt and equity funding rounds, settled outstanding issues with the hosts, and positioned itself firmly for the re-opening opportunities. Airbnb's full S-1 filing with the SEC is available here: https://www.sec.gov//1559/000119312520294801/d81668ds1.htm See more

Super happy to see rebounds happening before the end of the year. Especially happy to see the improvement and Lyft’s ability to beat analysts revenue expectations of $486.45 million. #TechNews #PortfilioCompanyNews #Lyft

Great Forbes article detailing an industry we pioneered and institutionalized. The crux is @mvp.vc is unique as a one-stop principal investor and advisory solution to venture-backed private companies. Manhattan Venture Partners has built their firm by focusing on a handful of high conviction firm mandated transactions instead of crossing orders across a large number of companies.... Managing Partner @bradleyfishman explains how they identify which companies to focus on: We start by asking ourselves a series of questions. What companies do we love? Who can we underwrite to a 1.5-3 year time horizon to an IPO? Where can we source the stock at the right price? What is our conviction that we can get the transaction approved without the company or another investor exercising a right of first refusal (ROFR)? This process is iterative with constantly changing information. Once they decide to move forward, they invest with their discretionary funds, form SPVs for smaller investors to aggregate, and act as a broker to help larger investors directly join the cap table of the company. While most intermediaries don’t also act as an asset management company, MVP has found that this approach has enabled them to be a one-stop-shop for various investors seeking access to the space. #tech #preipo #unicorn #MVPALLSTARFUND #mvpvc #mvp #venturebytes #allstar #ipo #research #technology #SoFi #directlisting #tommorowsipostoday #startup #airbnb #automattic #lime #revolut #postmates #udemy #impossiblefoods #wish #turo #Coinbase #spacex #repost @jaredcarmel

Shares of Pinterest closed up nearly 27% Thursday, as investors rallied around the company’s blowout third-quarter earnings that indicated advertising demand revved up after a difficult period due to the Covid-19 pandemic. It really is great to see these rebounds happening before the end of the year #TechNews #PortfolioCompanyNews #ManhattanVenturePartners

The SEC has adopted a new set of rules to make it easier for small and medium-sized private companies to raise capital. Federal securities laws require that companies file with the SEC and publish financial statements and other information before they accept investors’ money. But there are several exemptions that the SEC revised on Monday. The agency doubled companies’ exemption amount to $10 million from $5 million under Regulation D. It also increased the amount companies c...an raise from individual investors and firms to $75 million from $50 million under the Regulation A exemption. The limit on crowdfunding deals was raised from $1.07 million to $5 million. Companies will also be able to make these so-called exempt offerings within 30 days of each other rather than the current six-month waiting period. Our Take: The new rules are a net positive for the small and medium-sized private companies. The vote marks the regulator’s latest move to help small and medium-size companies raise money in private markets, following an August rule that expanded the pool of so-called accredited investors deemed able to fend for themselves without the SEC’s protections. Chairman Jay Clayton said the rule would increase efficiency and facilitate capital formation, a central part of the SEC’s mission. He said it would reduce regulatory costs and burdens for companies by streamlining a patchwork of securities-law exemptions carved out by Congress and regulators over the years. Article via #VentureBytes67 #VentureCapital #ManhattanVenturePartners #SiliconValley #NewWave

Venture Bytes 67 REPORTS Prop 22 A Win for the Third Way California’s Prop 22 ballot measure passed with a 58% majority, or 6.7 million votes. The initiative exempts gig companies from Assembly Bill 5 law to classify their workers as employees. Instead, the companies will provide gig workers with improved conditions, such as an earnings guarantee of at least 120% of the state’s hourly minimum wage, (though this won’t apply to the time when drivers are waiting between pass...engers), new health benefits for workers who log a minimum of 15 hours, and medical and disability coverage for injuries and illnesses on the job. Gig companies including Uber, Lyft, DoorDash, and Instacart will be allowed to continue classifying their workers as independent contractors by providing them with a few additional benefits. While the decision provides some welcome relief to these companies, it will still likely drive up the costs of riders’ fares. The new deal will add 1% to Uber’s costs, whereas reclassifying the workers as employees would have added 5%, according to Morgan Stanley. In order to cover the new benefits of their California employees, the companies will likely have to pass on some of the costs to customers. In a blog post, Tony Xu, the CEO of DoorDash, wrote that his company wanted a so-called third way, seemingly going beyond conventional definitions of employees and independent contractors. We are committed to working with lawmakers across the country and in Washington to develop tailored solutions that reflect the 21st century economy, and provide certainty to everyone who has come to benefit from the gig economy, including Dashers, merchants, and customers, he wrote. The successful ballot measure has a high probability of becoming the opening shot in changing the labor laws to reflect the dramatic shift in the way we work. The California ballot measures could prove to be a strong precedent and provide a road map for other states that may have considered imposing similar new laws on gig companies. Ultimately, if that holds true, the deck will be cleared for all the gig economy companies to thrive and, in the process, continue to transform our way of life.

#ManhattanVentureMonday #PortfolioNews @Airbnb at the Cusp of Filing for IPO! ... According to a Bloomberg report, Airbnb’s long-awaited filing for an initial public offering has slipped to next week. The home- share giant’s public filing with the SEC could come as soon as Monday, November 16. The company decided on a delay to keep it from being overshadowed by the fallout from the U.S. election. Airbnb could still adjust its plans again. The home-sharing platform had planned to file back in March to go public but then coronavirus hit, and bookings tanked. Our Take: Airbnb’s IPO is expected to be the largest IPO in 2020. The timing is not a surprise. The company had been seeing a few green shoots since June, led by drive-to vacations, increased bookings in rural and suburban listings, and life reverting to normal in a few international markets. More recently, Bookings.com and Expedia noted on its quarterly earnings calls that their alternative accommodations units where driving their revenue growth. We expect the IPO to be well received. Airbnb has transformed the retail hospitality industry, is shaking up business travel hospitality and defines the emerging gig economy. At its core Airbnb empowers hosts and guests to have a personal experience, earn income and save money. It is the most advanced and disruptive sharing economy company and forms the core of a macro shift. Given its compelling addressable market, large rental inventory and a premier brand name, the company is well positioned to dominate its niche market segment and eventually move up the value chain into the high-end hotel space. Article via #VentureBytesResearchReport vol67 See more

McDonald’s Jumps on the Alternative Meat Bandwagon and Further Validates the Nascent Market Meat alternatives and the broader plant- based foods have penetrated deeper into the mainstream. The latest to jump on the bandwagon is McDonald’s. The company just announced plans for a major investment in plant-based menu items that it considers a long-term growth driver. McDonald’s, according to data from Piper Sandler, sells approximately 550 million pounds of beef per year.... That’s roughly 2.6 billion burgers to its to 69 million consumers per day at over 38,000 restaurants across more than 100 countries. This translates to a global market opportunity of roughly $10.5 to $13 billion (2.6 billion burgers x $4-$5 average price). More importantly, McDonald’s McPlant line of products will help evangelize plant- based meat alternatives in the U.S. and internationally. Plant-based meat and dairy alternatives have gained momentum during the pandemic and are driving sales at retail and grocery stores. Dollar sales of plant- based meat surged 265% over an eight- week period ending April 18, 2020. This was 6 times the sales of conventional meat. Retail sales of plant-based meat showed a similar trend with an 18% increase in 2019, which was 9 times faster than total U.S. retail food sales (GFI). The sector gained strong validation when large food companies such as Tyson Foods, Cargill, and JBS, which together process two thirds of all the beef in the U.S., added their own plant-based meat alternatives. Accordingly, over 700 new plant-based foods were introduced at U.S. retailers looking to offset the stagnating or declining sales of animal meat products. While, initially McDonald’s has decided to manufacture its own meat alternatives for its burgers, a tie up with Impossible Foods and Beyond Meat, leaders in terms of innovation and replicating animal meat, cannot be ruled out. In fact, as both companies ramp up production, increase throughput, strengthen their supply chain, and widen their consumer base, it will be hard for other suppliers to match their level of quality and price. Article via Venture Bytes vol. 67 #ManhattanVentureResearch

Rumors of the Death of IPOs Were Greatly Exaggerated!! The IPO market is having a banner year. U.S.- listed initial public offerings for the three quarters to date have raised nearly $95 billion through September 23, according to data provider Dealogic. Except for 2014 (when IPOs raised $96 billion), that surpasses the totals of every year since the tech bubble peaked in 2000. At this rate, 2020 IPO totals will even eclipse 2014, and may ultimately surpass the irrationally e...xuberant, tech-boom years of 1999 and 2000. All the frenzied buying of new issues this year has resulted in the 22% first day gains, the largest since 2000. On average, 2020 IPOs have risen roughly 24% from their offering prices. This year, more than 80% of the money raised in initial public offerings went into three baskets: healthcare, technology, and SPACs, also called blank-check companies. According to Dealogic, that is the most concentrated IPO market since 2007, when new listings of banks and lending institutions flooded the market before the financial crisis. More than 235 companies have joined U.S. public markets this year, on track for the most since 439 companies went public in 2000, according to Dealogic. The list excludes major unicorns in the wings such as Airbnb, which is expected to file later this year, Palantir and Asana! What exactly is driving this hectic IPO activity? We believe three reasons: Softbank’s pull-back from funding private companies generously through its Vision Fund, the recognition of software companies’ importance during the ongoing pandemic and their expected core position in the enterprise IT infrastructures of the future and, lastly, the rush to beat the clock ahead of the expected volatility and uncertainty in a presidential election year. Following the string of successful IPOs to date, is it reasonable to expect the momentum to continue? YES! expect the strong flow of IPOs to continue for some time. #VentureBytes vol. 66 @santoshraomvp

Fintech: Robinhood raises fresh funding round. #NotableFundingRound via Venture Bytes research report volume #66 @robinhoodapp , Menlo Park-based discount brokerage firm, raised another $460 million in a Series G round. The round saw participation from D1 Capital Partners, Andreessen Horowitz, Sequoia Capital, DST Global, Ribbit... Capital, and 9Yards Capital. The company had raised $200 million in August at $11.2 billion valuation, which now stands at $11.7 billion. See more

This is just a snapshot of what will happen if the bill to classify @Uber and @Lyft drivers as employees passes. As we reported back in September, a California appeals court judge blocked an order requiring Uber and Lyft to classify drivers as employees, averting an expected shutdown of the ride-sharing services in California at midnight on Friday, August 21. The court granted Uber and Lyft a temporary stay while their appeals process plays out. ... The big question now is whether this is a stay of execution - as some have called it - with the hope that both parties will come to an amicable settlement by THIS MONTH! ... Or is it the beginning of the end of the old legal framework designed for the pre-GIG era? Uber and Lyft have until October according to the appeal judge, to convince the court to throw out the order that they employ their drivers. If they are unsuccessful, the companies will be back where they started, and may again decide to shut down operations in California. What are your thoughts on the matter. So far we haven’t seen any updates and the month is along over See more

Just seems like this is the win win win of 2020! Online-gambling and fantasy-sports company @DraftKings Inc., received a market value of more than $6 billion after going public through a blank-check company merger a nontraditional route to becoming a public company for a very nontraditional company. Since it’s IPO the stock prices have risen and they are striking more and more partnerships that will continue to make the business stronger. So happy for o...ur portfolio company @draftkings for making winning decisions. #ManhattanVenturePartners #PortfolioCompany #PortfolioCompanyNews #Draftkings

In May, after fighting to keep Airbnb Inc. from the brink of collapse, Chief Executive Brian Chesky started noticing signs of life in part of his business. Urban residents were searching for vacation rentals in neighboring towns and cities, so they didn’t have to fly. People wanted to book entire homes, meaning Airbnb could gain from travelers shunning hotels and their shared spaces. Around the same time, he saw a text from Morgan Stanley’s top technology ...banker, Michael Grimes , about a potential debt investment from Silver Lake and Sixth Street Partners. Bankers had spent days working on a different financing option that would have given prospective investors the right to own more than 5% of the company. The Silver Lake and Sixth Street deal would entitle them to 1.25% of the company. It came at a steep interest rate of 11%, but it was a better bet if Airbnb could repay or refinance the money quickly. Mr. Chesky was betting on the opposite, for a simple reason: 9/11 was before Zoom, he said. Unlike hotels, Airbnb didn’t own any properties. Its overhead costs were low, and it didn’t need a minimum occupancy to keep doors open. He chose the debt. Bankers cranked out a term-sheet in 72 hours. Silver Lake and Sixth Street lent the company $1 billion. An additional $1 billion loan followed from another consortium of investors. With business recovering, Mr. Chesky wanted to send a strong signal to investors and boost morale among employees, some of whom were anxious about their stock options expiring at the end of the year, according to the person Mr. Chesky has frequently consulted. In recent months, Airbnb rehired a handful of its laid-off employees. In a companywide virtual meeting Thursday, Mr. Chesky announced Airbnb was reinstating its employee bonus program. #PortfolioCompanyNews #VentureCapital #vc #ipos #ipo #preipo #mvp #allstar #portfolio #manhattanventureresearch #venturebytes #newyork #sanfrancisco #siliconvalley #investing #techinvesting #technews @airbnb

#FinanceFriday Here’s our take: With plant-based meat products expected to reach one third of the global meat market by 2054 or close to a trillion dollar, the competition will get fierce sooner rather than later. Additionally, the big animal meat companies are also rapidly innovating. Tyson Foods, and JSW already have introduced their respective plant-based meat products. Similarly, Cargill an agribusiness company also entered the fr...ay in April with its private label plant-based patties and ground products. While Impossible and Beyond have a head start in the field, the tables can turn quickly in a nascent market such as this one. For instance, both the companies will find it hard to match the access to ingredients, R&D, expertise, supply chain, and size of Cargill. Cargill’s investment in Puris, which is a major pea protein supplier and also supplies to Beyond Meat, will help it overcome the late start. Against this backdrop, going forward, Impossible and Beyond would look to accelerate their expansion, with more cash infusions, in the U.S. as well as internationally. They will look to create a sustainable moat by further refining their ability to make a range of products from diverse plant sources that replicate the taste and texture of regular animal meat. #VentureBtyes vol. 65 See more

#ManhattanVentureResearch Reports: Epic’s legal and PR fight with Apple and its App Store policies seems to be escalating. The Fortnite-maker has filed an injunction in U.S. District Court, saying it was notified by Apple that all of its developer accounts and access to developer tools will be cut off by August 28 including for the Unreal Engine Epic offers to third-party developers. Fortnite was removed from Apple’s App Store after Epic introduced a new... way of making in-game Fortnite purchases/ currency (V-bucks) with a permanent 20% discount if directly purchased from the company and not from the App Store. Our Take: This is undoubtedly a high stakes game of poker between two powerful players. While Apple has fended off challenges to its App Store fee policy before and prevailed, this fight has the potential to leave a few deep scars before it ends in its favor, for two reasons: One, it’s coming on the back of recent antitrust hearing of big tech companies, and a general distrust of the tech companies. Second, the backlash from the millions of Fortnite mobile users could create enough noise in the marketplace, at a time when the EU regulators and developers worldwide are also watching this battle closely for any chinks in Apple’s armour that they can attack. The attacks against the App Store fees will continue but going by its past record the company will aggressively defend what is increasingly becoming its crown jewel. See more

#ManhattanVentureMonday #TechNews - A California appeals court judge blocked an order requiring Uber and Lyft to classify drivers as employees, averting an expected shutdown of the ride-sharing services in California at midnight on Friday, August 21. The court granted @Uber and @Lyft a temporary stay while their appeals process plays out. The big question now is whether this is a stay of execution - as some have called it - with the hope that both... parties will come to an amicable settlement by October. Or is it the beginning of the end of the old legal framework designed for the pre-GIG era. Uber and Lyft have until October to convince the court to throw out the order that they employ their drivers. If they are unsuccessful, the companies will be back where they started, and may again decide to shut down operations in California. This won’t be the final word. Uber and Lyft, along with DoorDash, were successful in getting a proposition on the state’s 2020 ballot that, if approved, would allow them to sidestep AB5 and continue classifying its drivers as independent contractors. The measure, Proposition 22, also stipulates that the companies provide more benefits to drivers, including minimum earnings guarantee of 120% of the minimum wage while on the job, expenses of 30 cents per mile, a healthcare stipend, and automobile accident and liability insurance. Uber has also initiated measures to enhance driver autonomy to set their own fares and cherry pick rides on the app. DoorDash has also taken steps to enhance Dashers’ pay leading to an average 12.5% increase. What are your thoughts on the issue?? See more

#FinanceFriday - A reverse takeover (RTO), reverse merger, or reverse IPO is the acquisition of a private company by an existing public company (often a SPAC - see prior post ) so that the private company can bypass the lengthy and complex process of going public. Sometimes, conversely, the public company is bought by the private company through an asset swap and share issue. The transaction typically requires reorganization of capitalization of the acquiring company. What was the biggest or most exciting reverse merger you can think of? Tell us in the comments!

#ManhattanVentureMonday - Okay so here’s the scoop on the ROFR process: If the founders of a private company ever want to sell any of their shares to a third-party, the right of first refusal (ROFR) requires them to give the company the first opportunity to purchase the shares on the terms offered by the third-party. If the company doesn’t exercise its right of first refusal, the original venture capital investors then have the opportunity to purchase the shares on the same ...terms. If both the company and venture capital investor forego their rights of first refusal, then the founders may proceed to sell their shares to the third-party. A right of first refusal is designed to control which parties may own a significant number of shares in the company and give the venture capital investors the first opportunity to purchase shares if they desire to do so. While the right of first refusal appears not to limit the founders’ ability to transfer their shares, it can have that impact (third parties may not spend the time to negotiate a deal with founders if they believe the company or venture capital investor can step in and take their offer via the right of first refusal). If there is more than one venture capital investor, if the investors exercise their right of first refusal, each investor may participate in the purchase pro rata based on the number of shares held by each. If any investor declines to participate in the purchase, the others have a right of oversubscription to purchase the shares that the non-purchasing investor was entitled to purchase, again pro rata based on the number of shares held by each purchasing investor. #ManhattanVenturePartners #Vc #VentureCapital #VentureTerms #Shareholders #ROFR #Nyc

MORE #NOTABLEFUNDINGROUNDS in the TMT space Yup, Asana is on the list and right after the last round of funding they went public via direct listing (yesterday) This is what makes our space exciting. #SecondaryAsAService #VentureCapital #VC #VentureBytes #ManhattanVenturePartners #ManhattanVentureResearch

Some of the coolest companies in the world are here fresh off the #VentureBytes #65 press - take a look at a few of the most notable funding rounds to take place recently. What are your thoughts on any of these companies or funding rounds?! To read more check out our newest Venture Bytes 65. Don’t have it? Sign up for Manhattan Venture Research monthly research reports now @ mvp.vc in bio #ManhattanVentureMonday #NotableFundingrounds #VentureBytes #Technews #ManhattanVenturePartners #MVP #VC @epicgames @robinhoodapp @kabbageinc @gett @uber @routematch #Rancher

Fresh off the #VentureBytes #65 press - take a look at a few of the most notable funding rounds to take place recently. What are your thoughts on any of these companies or funding rounds?! To read more check out our newest Venture Bytes 65. Don’t have it? Sign up for Manhattan Venture Research monthly research reports now @ mvp.vc in bio #ManhattanVentureMonday #NotableFundingrounds #VentureBytes #Technews #ManhattanVenturePartners #MVP #VC @spacex @remitly #grab @bigcommerce