Continuing our coverage of Utah-based start-ups, this morning we have our second big round of the year from the state. Lucid Software, best known as the parent company of Lucidchart, revealed today that it has actually raised a$52 million Series D. Everything’s fascinating enough, however more fun is that the company’s brand-new earnings milestone.
Lucid informed TechCrunch in an interview with its CEO Karl Sun that it has actually crossed the $100 million yearly repeating earnings(ARR) mark. Somewhat annoyingly, it decreased to state when it did so. From previous reporting we understand that the firm reached $50 million ARR at some time in 2018. Its growth rate then, if we squint and do half-baked mathematics in our head, looks pretty good.
Recently, fellow Utah-based Podium likewise raised a new round and crossed the $100 million ARR threshold.
In the same vein of nearly informing us what we want to know, Lucid declined to share a new assessment but noted that the brand-new round pressed its evaluation up and that it’s now worth more than $1 billion. Was it worth more than $1 billion the last time it raised? We don’t understand, and the company isn’t informing.
Sharing some details is better than none and Lucid is a fascinating business, so let’s advise ourselves about what it does, and then speak about why it says it raised less in this Series D than its Series C.
Lucid is a software business with two primary items, Lucidchart and Lucidpress. Lucidchart is a cloud software tool that lets users(and groups)construct visual information representations like flowchart, org designs and the like. (By the way, while prepping this piece, I discovered my partner was a big Lucidchart user throughout her graduate education.) Lucidpress helps business develop top quality products and content. The 2 items have assisted the company draw in around $166 million in capital so far, per Crunchbase and our own estimations.
You’ll notice Lucid raised less ($52 million) in this round than it did in its preceding capital occasion, a $72 million investment. I asked Sun about it, keeping in mind that the 2 most obvious methods to check out the smaller figure was that the company was either in trouble or that it did not require a lot more money. It’s alternative two, according to the CEO, who told TechCrunch that Lucid didn’t need to raise thanks to its history of being very capital efficient.
The company still has “a fair quantity in the bank” from its preceding round, Sun added, however it’s taking a mindful stance in light of the brand-new world it now discovers itself in. Capital made sense, Sun stated. And since financiers “continued to knock on the door stating we want to invest more,” he added, when the business consented to take on new funds in mid-March, it wasn’t a difficult close. The CEO informed TechCrunch that his company might have raised more, however decided to “hold the line” at around $50 million.
Lucid has lots more capital and most likely sufficient runway to make it through the approaching economic downturn. In more regular times I ‘d mark my foot here, asking when we get an S-1. With the markets in turmoil and an election looming, we’ll ask again next year.
Today’s financing occasion was led by ICONIQ, which formerly purchased the business’s late-2018 Series C worth $72 million. Prior investors Meritech and Spectrum were participated the round by brand-new investor Utah-based Cross Creek.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.