Jun 12, 2019

CrowdStrike raises $612 million in IPO

CrowdStrike, a Sunnyvale, Calif.-based cybersecurity company, raised $612 million in its IPO. It priced 18 million shares at $34, well above its $23-$30 offering range (let alone its original $19-$23 range), for an initial market cap of $6.69 billion.

Why it matters: This is the latest indication that Wall Street has a voracious appetite for money-losing tech unicorns, so long as they don't focus on ride-hail.

ROI: CrowdStrike had raised over $480 million in VC funding from firms like Warburg Pincus (30.2% pre-IPO stake), Accel (20.2%) and CapitalG (11.1%). Its last private valuation was $3.35 billion, post-money on a Series E round last summer.

The bottom line:

"CrowdStrike provides cloud-based security technology, aiming to do for security what other companies have done for human resources, customer relationship management and other sectors. The company gained notoriety after revealing that two groups with ties to Russian intelligence had breached the Democratic National Committee’s technology during the 2016 presidential campaign."
Tomio Geron, the Wall Street Journal

Go deeper: CrowdStrike files for IPO amid 2020 hacking fears

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Concern over coronavirus spread: Italy, South Korea and Iran report more cases

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The number of novel coronavirus cases in South Korea, Italy and Iran jumped on Sunday as infections in mainland China continued to grow, the latest figures show.

The big picture: As South Korea and Italy stepped up emergency measures amid rising case numbers, World Health Organization officials expressed concern about infections with no clear link to China. COVID-19 has killed at least 2,619 people and infected almost 80,000 others, with all but 27 deaths occurring in mainland China.

Go deeperArrowUpdated 2 hours ago - Health

Sanders reveals free childcare plan for preschoolers

Democratic presidential candidate Sen. Bernie Sanders speaks during a campaign rally on Saturday in El Paso, Texas. Photo: Cengiz Yar/Getty Images

Democratic presidential candidate Sen. Bernie Sanders announced on CBS' "60 Minutes" Sunday a new plan to guarantee free child care and pre-kindergarten to all American children from infancy to age four.

Details: In the wide-ranging interview, Sanders told Anderson Cooper he planned to pay for universal childcare with a wealth tax. "It's taxes on billionaires," he said.

Go deeperArrowUpdated 3 hours ago - Politics & Policy

Joe Biden places second in Nevada caucuses, ahead of Pete Buttigieg

Democratic presidential candidate and former Vice President Joe Biden a Nevada Caucus watch party in Las Vegas on Saturday. Photo: Ronda Churchill/AFP via Getty Images

Former Vice President Joe Biden secured second place in the Nevada Democratic caucuses with former Southbend Mayor Pete Buttigieg third, according to NBC News projections Sunday.

Why it matters: It's a boost for Biden, who's widely tipped to be endorsed by House Majority Whip Jim Clyburn (D-S.C.) on Wednesday, ahead of this week's South Carolina primary.

Go deeperArrowUpdated 3 hours ago - Politics & Policy