Sep 12, 2019

SmileDirectClub cashes in at IPO

Illustration: Rebecca Zisser/Axios

SmileDirectClub, a provider of at-home teeth straightening systems, raised $1.3 billion in its IPO. It priced 58.54 million shares at $23, above $21-$23 range, for an initial market cap of $8.9 billion, and will trade on the Nasdaq (SDC). J.P. Morgan was lead underwriter.

Why it matters: It shows that rule-muddying isn't just for transportation and housing unicorns. SDC has been the subject of numerous safety complaints to state dental boards from orthodontist organizations, which the company pushes back on as more about profits than patients.

ROI: SDC had raised nearly $400 million in private funding from firms like Clayton, Dubilier & Rice, Spark Capital, Kleiner Perkins Digital Growth and 3L Capital.

The bottom line: This is bad news all over for incumbent Align Technology. First, rival SDC now has a giant war chest and capital markets access. Second, Align is effectively out more than $1 billion, after being forced by an arbiter to sell its 19% stake in SDC back to the company at a way below-market rate, after being found to have violated a non-compete agreement.

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A push to let mom and pop invest in startups

Illustration: Sarah Grillo/Axios

There is a revived push to allow mom-and-pop investors to buy shares in private companies, something from which they have been generally prohibited.

The state of play: At issue is how a lot of startup value creation has become over-weighted to the private markets, with fewer gains being generated post-IPO.

Go deeperArrowSep 18, 2019

Peloton raises more than $1 billion in IPO

Illustration: Sarah Grillo/Axios

Peloton Interactive last night raised $1.16 billion in its IPO, giving it an initial market cap of around $8.1 billion.

Why it matters: It's a much-needed IPO win for both New York's tech startup market and lead banker J.P. Morgan, both of which were reeling from WeWork's spontaneous combustion.

Go deeperArrowSep 26, 2019

Funding for China's private equity market falls by a third

Private capital investment in China slowed markedly in the first half of the year, data from the Emerging Market Private Equity Association released Tuesday showed.

By the numbers: Capital invested in China's private markets fell from $15.1 billion in the first half of 2018 to $9.8 billion through June 2019, with deal count across all transaction types in the country declining from 582 to 322 over the same period.

Go deeperArrowSep 25, 2019