Illustration: Aïda Amer/Axios

DoorDash has raised $400 million in new equity funding at a $16 billion post-money valuation, Axios has learned.

Why it matters: For all the talk of deals that didn't happen because of coronavirus, this one is a product of the pandemic.

  • Durable Capital Partners led, and was joined by Fidelity and return backer T. Rowe Price.

Flashback: On Feb. 27, DoorDash secured $340 million in debt funding and filed confidential IPO paperwork. There were no plans to raise additional private equity.

  • Overall, DoorDash had raised around $2 billion from VCs (not including the debt). Its final infusion seemed to be last November, when it snared $700 million at a $13 billion post-money valuation.

Fast forward: The pandemic changed the meal delivery giant's plans. For starters, delivery volume soared due to the lockdowns. DoorDash also had new expenses, such as personal protective equipment for drivers and what it says was around $120 million worth of comped services to help beleaguered restaurant partners.

  • There also were concerns about market volatility, although most IPO issuers have sailed through smoothly. Plus the prospect of strengthened competition via an Uber/Grubhub merger that ultimately became a Just Eat/Grubhub merger.
  • The Wall Street Journal previewed this deal last week, noting that the company expects operations to break even for the quarter ending June 30 (excluding one-time expenses).
  • DoorDash declined to make an executive available for comment, likely because of the still-active IPO registration.

The bottom line: Gig economy companies are under all sorts of PR pressures right now, including from politicians and partners, but none of it seems to be fazing investors.

Go deeper

Dan Primack, author of Pro Rata
Sep 17, 2020 - Economy & Business

Breaking down Snowflake's massive IPO

Illustration: Sarah Grillo/Axios

Snowflake on Wednesday went public in the largest software IPO of all time, and then kept running like the Energizer Bunny on speed. By the time it was over, the company was worth over $80 billion.

Background: Snowflake was founded in 2012 to build data warehousing and analytics services for other businesses — audaciously seeking to both compete with Amazon while also building on top of it.

Ina Fried, author of Login
Sep 17, 2020 - Economy & Business

IPOs flourish as market shows appetite for tech stocks

Photo: JFrog

Snowflake shares more than doubled on Wednesday, after having the biggest software IPO in history, while JFrog also posted strong first-day gains.

Why it matters: The moves show that Wall Street's appetite for new tech stocks remains significant, with concerns about both the pandemic and high valuations taking a back seat.

White House ricin package suspect allegedly urged Trump to "give up"

President Trump exits the Oval Office at the White House on Tuesday. Photo: Drew Angerer/Getty Images

A Canadian woman allegedly mailed a letter addressed to President Trump containing the poison ricin and the threat "give up and remove your application for this election," court papers filed Tuesday show.

Driving the news: Pascale Cecile Veronique Ferrier, 53, was arrested trying to enter New York from Canada on Sunday. She appeared briefly in a Buffalo, N.Y., courtroom where a judge entered a not guilty plea on her behalf to the charge of threatening the president, per CBC.

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