Summary List Placement
The highly anticipated Snowflake IPO did not disappoint. On Wednesday, it broke records with the biggest-ever public debut for a software company.
The company raised $3.4 billion by pricing shares at $120. And when the bell rang, public investors went crazy for the stock. At one point, shares spiked up 165% to $318.37, before trading was temporarily halted. Shares settled down to over $260 by afternoon and closed the day at $253.93. At that share price, Snowflake finished day one with a valuation of over $70 billion, leaving a trail of multibillion-dollar investors in its wake.
So, which investors won big in this IPO? Business Insider put together a list of the largest venture shareholders as disclosed by the company. By day’s end, their stakes were collectively worth nearly $41.18 billion.
And, just for fun, we calculated an estimated value of their funds’ stakes based on the closing price of Day 1 and rooted out what they likely paid for at least some of their stake through private fundraising, based on stock prices disclosures made by the company in its prospectus.
Of course, investors are subject to a lock-up period and time will tell whether share prices for Snowflake will hold by the time these investors are allowed to sell.
Take a look at which investors gained the most from Snowflake’s spectacular IPO. There were no small fish in this pond.
Sequoia’s Carl Eschenbach: a Snowflake stake worth an estimated $5.24 billion
Sequoia Capital’s Carl Eschenbach led Snowflake’s $450 million Series F in 2018. It bought more stock in another round as well, and Eschenbach joined the board the next year. Stock in the Series F sold for $14.96 per share, Snowflake disclosed.
Sequoia Capital’s stake in Snowflake: 20,619,156 shares (8.4%). At $253.93 per share the stake is worth about $5.24 billion.
Redpoint Ventures’ Satish Dharmaraj: a Snowflake stake worth an $5.57 billion
Redpoint Ventures’ Satish Dharmaraj led several investments in Snowflake starting in 2014, as the lead investor for the company’s coming-out-of-stealth $26 million Series B. The Series B stock cost about 97 cents per share, Snowflake disclosed.
Redpoint Ventures’ stake in Snowflake: 21,928,585 shares (9.0%). At $253.93 per share, the stake is worth nearly $5.57 billion.
ICONIQ’s Matt Jacobson: a Snowflake stake worth an estimated $8.57 billion
ICONIQ’s Matt Jacobson led Snowflake’s $100 million Series D in 2017 and the firm bought more stock in later rounds. Stock in that round sold for about $3.50.
ICONIQ Strategic Partners’ stake in Snowflake: 33,752,048 shares (13.8%). At $253.93 per share, the stake is worth over $8.57 billion.
Altimeter Partners’ Kevin Wang: a Snowflake stake worth an estimated $9.21 billion
Altimeter’s Kevin Wang led Snowflake’s $45 million Series C round in 2015. Stock in that round sold for about $2.29.
Various Alterimeter funds participated in more rounds until all related Altimeter entities collectively owned 15%.
Altimeter’s stake in Snowflake: 36,286,307 shares (14.8%). At $253.93 per share, the stake is worth over $9.21 billion.
Sutter Hill Ventures’ Mike Speiser: a Snowflake stake worth an estimated $12.59 billion
Mike Speiser lead Snowflake’s original $5 million Series A round back in 2012, joined the board, and has been there ever since. Series A shares cost about 35 cents back then, the company disclosed.
Snowflake has gone on to raise $1.4 billion in a half dozen more rounds, at an estimated $12.4 billion valuation, with Sutter frequently participating.
Sutter Hill Ventures’ stake in Snowflake: 49,564,848 shares (20.3%). At $253.93 per share, the stake is worth nearly $12.59 billion.