analysis MariaDB celebrated its IPO just weeks before the end of a year that has dramatically changed the fortunes of tech companies that raise money on the world’s stock exchanges.
Earlier this week, the database company, which has built cloud services on top of a fork of MySQL, announced it had started trading its shares on the New York Stock Exchange. It went public through Special Purpose Acquisition Company (SPAC) Angel Pond Holdings. The move brings $104 million in funding and $18 million through private investment in public equity.
The investment comes after a difficult year for those hoping to raise money through the IPO. Global consulting firm EY just released its quarterly IPO data report showing that in 2022 the number of US tech IPOs fell 85 percent – from 128 to 19 – while their overall rating fell 97 percent – from 69 $.4 billion to $1.6 billion compared to 2021.
That said MariaDB CEO Michael Howard The registry It was hard to imagine that many database companies would use exchanges as a funding model in the near future. “Given the market conditions, it’s going to be pretty damn hard for startups that don’t have a business model and market viability to suddenly enter the database market, which has high capital requirements,” he said.
He said he had no plans to launch an IPO this year, but Angel Pond’s approach is “very special” in terms of the people it brings and the opportunities it can create.
Angel Pond was founded by CEO and Chairman Ted Wang, founder of Puissance Capital Management and a former partner at Goldman Sachs, and Simon Xie, co-founder of Alibaba Group.
It was the combination of experience in financial services and the Asian market that MariaDB appealed to along with leading the process.
“For the IPO in and of itself, it gave us an efficient and knowledgeable means of going public. Without those people around, you’re kind of a baby in the woods,” Howard said.
MariaDB ended fiscal 2022 with more than $50 million in annual recurring revenue from 600 customers in over 60 countries.
However, details on profitability would have to wait until the results were reported to the market, Howard said.
“Typically when you become a public company you have to come up with a plan to become very cost effective. Over time, we’re going to get really good pre-tax results,” he said.
The data analytics and database market has seen some spectacular valuations and IPOs in recent years, not the least of which is Snowflake, the cloud data warehouse and platform, which peaked at $120 billion in late 2020, more on paper was worth than IBM.
But not everyone went on the gold rush. The data lake and machine learning specialist Databricks should be “IPO-ready” in 2021, CEO Ali Ghodsi said at the time.
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In November, he said The registry There were no plans to continue. “The markets are mostly closed. We’re not very keen on getting out right now. But we will eventually be a public company, and we operate with the internal maturity and rigor of public companies.”
However, Databricks raised a $1 billion investment round in February 2021 that included AWS, Microsoft, Google, Andreessen Horowitz (VC firm owned by Netscape founder Marc Andreessen), and Salesforce Ventures. For one, it’s unlikely to be running out of time anytime soon. ®
https://www.theregister.com/2022/12/21/mariadb_uses_spac_to_begin/ MariaDB starts trading in a difficult market • The Register