CM Weekly: S-1 Bonanza - Snowflake, Asana, Unity, SumoLogic

Welcome to this week's edition of CM weekly featuring stories I found interesting on technology, investing, and fintech.

This week we saw a flood of high growth tech companies filing to go public. I read through each of these companies’ S-1 filings and pulled out some of the more interesting stats to highlight. 

To conclude, I also share a few of my broader observations on what this means for the markets, startups, and investors. 

Written by Chris McCann, General Partner @ Race Capital, former Greylock Partners. More about me. 

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Snowflake S-1

• Company Description: Snowflake is a full stack cloud data platform.
• Founded: 2012
• Customers: 3,117 
• Customer Notes:
• Snowflake has 56 customers paying $1M+ ARR
• Capital One accounted for 11% of Snowflake's revenue.
• Featured Customers: Nielsen, AXA, Capital One, Experian, Stava, Sony, Logitech, Blackboard, Instacart, Adobe, Dropbox, and Akamai.
• Revenue: $264M
• Revenue Growth (YoY): 132%
• Gross Margin: 62%
• International: 88% US Revenue, 12% International
• Largest VC holders: Sutter Hill Ventures (20%) Redpoint Ventures (9%) Sequoia Capital (8%)

Deeper dive into Snowflake’s S-1 Filing: https://blog.publiccomps.com/snowflake-s1-ipo-teardown/

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Asana S-1

• Company Description: Asana helps teams organize, track, and manage their work.
• Founded: 2008
• Customers: 1.2M paying users, 75K paying companies.
• Customer Notes:
• 4.8% free to paid conversion rate 
• 9% of revenue from top 100 customers
• Featured Customers: Autodesk, Viessmann, SiteMinder, and G2.
• Revenue: $142M 
• Revenue Growth (YoY): 86%
• Gross Margin: 86%
• International: 60% US Revenue, 40% International
• Largest VC holders: Benchmark (10%), Founders Fund (6.5%)

Deeper dive into Asana’s S-1 Filing: https://tomtunguz.com/asana-s-1/

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Unity S-1

• Company Description: Unity is a 3D development platform for games, animation, and enterprise. 
• Founded: 2004
• Customers: 1.5M active creators
• Customer Notes:
• 62% of their revenue comes from a revenue sharing model (operate solutions)
• 716 customers contributes more than $100K ARR 
• Customers spend on average 4.9 hours per day using Unity
• Featured Customers: Electronic Arts, Tencent, Ubisoft, Samsung, Skanska, and Volvo.
• Revenue: $700M
• Revenue Growth (YoY): 42%
• Gross Margin: 79%
• International: 30% US Revenue, 70% International
• Largest VC holders: Sequoia Capital (24%) Silver Lake (18%)

Deeper dive into Unity’s S-1 Filing: https://macro-ops.com/unity-software-breaking-down-s-1-filing/

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SumoLogic S-1

• Company Description: SumoLogic is a machine data analytics platform for security, operation, and BI.
• Founded: 2010
• Customers: 2,131 customers
• Customer Notes:
• 329 customers contributing greater than $100K ARR
• 27 customers contributing greater than $1M ARR
• Featured Customers: 23andMe, Alaska Airlines, LendingTree, MLB, Netflix, PagerDuty, Salesforce, and Twilio.
• Revenue: $155M
• Revenue Growth (YoY): 49%
• Gross Margin: 69%
• International: 84% US Revenue, 16% International
• Largest VC holders: Greylock (22%), Sapphire Ventures (7%), Accel (6%), DFJ (5%)

Deeper dive into SumoLogic’s S-1 Filing: https://cloudedjudgement.substack.com/p/sumo-logic-benchmarking-the-s1-data

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Observations

Here are a few broader observations to share:

Startups are a long term endeavor - On average it took ~11 years for these companies to go public.

Expect more market uncertainty - While it's awesome all of these solid technology companies are going public, this rush of filings is most likely pointing towards more market volatility, especially as we get closer to November.

Concentrate and follow through - While spray and pray investing (small checks into lots of companies) is all the rage in Silicon Valley right now, the real winners are the firms who were able to stick it out and maintain 20%+ ownership through IPO. These phenomenal firms include - Sequoia, Greylock, and Sutter Hill Ventures.

Disclosure: I previously worked at Greylock Partners 

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