Dec 12, 2024 - Business
ServiceTitan breaks the IPO drought
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Illustration: Eniola Odetunde/Axios
ServiceTitan, a Glendale, Calif.-based provider of tradesperson SaaS, raised $624.8 million in its IPO, pricing well above the expected range.
Why it matters: There are no more excuses for other VC-backed unicorns (and their VCs) that keep cowering on the sidelines.
- Public market investors want what they're selling — with more demand than the investment bankers expected.
- And just to show this isn't a one-off, check out the share prices of Rubrik, Reddit, Astera Labs, Instacart, and Klaviyo.
By the numbers: ServiceTitan priced at $71 per share, above both its original proposed range ($52-$57) and its revised range ($65-$67).
- That's still below the Series H hurdle price of $84.57 per share, but the ratchet-based dilution is relatively minimal.
- ServiceTitan had raised over $1.4 billion in VC funding from backers like Iconiq, Bessemer Venture Partners, Battery Ventures, TPG, Thoma Bravo, and Index Ventures.
- It reports a $92 million net loss on $363 million in revenue for the first half of 2024, compared to a $104 million net loss on $292 million in revenue for the year-earlier period.
The bottom line: Coller Capital recently released LP survey data showing that 79% of respondents declined to reinvest with at least one of their GPs over the past year, and a majority expect to do so next year.
- This is what happens when distributions dry up, as we predicted back in April, and could grind the entire startup cycle to a halt. The hope now is that ServiceTitan has given everyone a jolt of confidence.
