IPO
WeTransfer preps IPO as European VC-backed listings set to slow down
January 12, 2022
File-sharing platform WeTransfer has announced its intention to go public, on the heels of a stellar year for VC-backed European listings.
The startup has settled on Amsterdam's Euronext exchange for its listing and will offer around €160 million in newly issued shares. Existing backers Highland Europe and HPE Growth will also sell an undisclosed number of shares. WeTransfer has not disclosed its valuation ambitions, but Bloomberg reported in June that the company could seek a value of around €1 billion (about $1 billion).
In 2021, Europe saw its highest levels of VC-backed public listings in a decade, both in terms of volume and exit amount. Heightened growth rates for digital-focused companies and rising market caps of big tech helped pique interest in new listings.
However, such listings are expected to decline in quantity and total value this year, according to PitchBook's 2022 European Private Capital Outlook, as investors flush with cash from recent exits will likely focus on new investments rather than exiting old ones.
The sky-high valuations in the private markets are also presenting more of an incentive to eschew stock exchanges where tech startups may not be as favorably considered. A majority of VC-backed European companies that went public last year now trade below their listing price, which could act as a deterrent for some, as record valuations don't also translate with the more cautious public investors.
Founded in 2009, WeTransfer has 87 million monthly active users across 190 countries. It has raised a total of €60 million in funding, with its most recent round in 2019. Profitable since 2013, the company reported €44 million in revenue and EBITDA of €12.2 million in the first nine months of 2020.
Correction: The original version of this article incorrectly stated that WeTransfer's revenue and EBITDA statistics were from 2021. It has been corrected to reflect that the data was from the first nine months of 2020.
Featured image courtesy of WeTransfer
The startup has settled on Amsterdam's Euronext exchange for its listing and will offer around €160 million in newly issued shares. Existing backers Highland Europe and HPE Growth will also sell an undisclosed number of shares. WeTransfer has not disclosed its valuation ambitions, but Bloomberg reported in June that the company could seek a value of around €1 billion (about $1 billion).
In 2021, Europe saw its highest levels of VC-backed public listings in a decade, both in terms of volume and exit amount. Heightened growth rates for digital-focused companies and rising market caps of big tech helped pique interest in new listings.
However, such listings are expected to decline in quantity and total value this year, according to PitchBook's 2022 European Private Capital Outlook, as investors flush with cash from recent exits will likely focus on new investments rather than exiting old ones.
The sky-high valuations in the private markets are also presenting more of an incentive to eschew stock exchanges where tech startups may not be as favorably considered. A majority of VC-backed European companies that went public last year now trade below their listing price, which could act as a deterrent for some, as record valuations don't also translate with the more cautious public investors.
Founded in 2009, WeTransfer has 87 million monthly active users across 190 countries. It has raised a total of €60 million in funding, with its most recent round in 2019. Profitable since 2013, the company reported €44 million in revenue and EBITDA of €12.2 million in the first nine months of 2020.
Correction: The original version of this article incorrectly stated that WeTransfer's revenue and EBITDA statistics were from 2021. It has been corrected to reflect that the data was from the first nine months of 2020.
Featured image courtesy of WeTransfer
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