In the article: Robinhood (), TikTok by ByteDance (), Weeeee (), Stripe (), Juul (), Coinbase (), SpaceX ()…
Chase for high yields is catapulting companies to once-unthinkable levels
Of the top three deals, SoftBank led two: for WeWork and Chinese internet company ByteDance, which owns the popular video app TikTok.
The data show how investors chasing high yields in private markets have catapulted valuations to once unthinkable levels, while allowing start-ups to delay public offerings.
China’s Ant Financial, an affiliate of Alibaba Group, increased its valuation by $76bn to $136bn following a fundraising round last year led by four sovereign wealth funds and the private equity group Warburg Pincus. The deal implied Ant was worth more than Goldman Sachs.
Similar to WeWork, ByteDance rival Kuaishou saw its valuation increase by $14bn last year after Tencent doubled down on an earlier investment in the company.
“It’s not that common to see one big investor come in and do huge round after huge round at big valuation after big valuation — at least it used to not be,” said Justin Byers, chief data officer at Prime Unicorn Index, which tracks the share prices of private companies valued at more than $500m.
Silicon Valley venture firms have contributed as well. Armed with an $8bn fund, Sequoia Capital participated in six of the 10 fundraising rounds resulting in the largest valuation jumps. Last month it helped lead a $250m deal that increased payment company Stripe’s implied value by more than half.