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Which VCs are set to make a killing in GitLab’s IPO

by RJ Shara | Sep 20, 2021 | Fundings and Exit, Startups | 0 comments

Getting where we left off Friday, let’s invest some more time in the GitLab IPO filing.

It’s going to be an IPO week, mind; Toast and Freshworks are set to cost Tuesday after the close of trading and begin to float on Wednesday. When they do, expect final notes on the worth of each and reports on how they trade. The Exchange will also try to get on calls with the CEOs. But because it is Disrupt week, things are going to be a little disorderly.


The Exchange checks out startups, markets and money.

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But that’s tomorrow. This morning, we’re digging back into designer toolkit GitLab and its impending IPO. Let’s start with a dive into the venture capital gamers that are going to construct in its public offering. And for the sake of having fun on a Monday, we’ll look back at the GitHub-Microsoft offer. The previous CTO of GitHub dropped some interesting data on the company’s historic outcomes that we can utilize to back into what the deal would deserve today if it happened.

From there, we have some projection to do. And we’ll close with an evaluation of GitLab’s quarterly data to see if a more narrow view of the business’s operating results informs us anything useful. Let’s have some enjoyable!

GitLab’s rich list

As a personal business, GitLab raised big sums of capital — — more than $400 million, per Crunchbase data. The capital came in significantly large pieces from the business’s seed rounds back in 2015 through its late 2019 Series E.

Khosla Ventures led the business’s early rounds prior to GV, Goldman Sachs and ICONIQ Capital took the baton.

Unsurprisingly, those names are the ones we can spy on in the business’s significant shareholder list. From the GitLab S-1 filing, what follows are share counts and percentage ownership stakes for the business’s investors that own more than 5% of its stock:

  • August Capital: 14,931,200 Class B shares, or 11.1% of that equity class
  • GV: 8,888,776 Class B shares, or 6.6% of that equity class
  • ICONIQ: 15,472,204 Class B shares, or 11.6% of that equity class
  • ICONIQ: 1,150,784 Class A shares, or 100% of that equity class (to be diluted in IPO)
  • Khosla: 19,028,320 Class B shares, or 14.1% of that equity class

Considered that GitLab was valued at $6 billion earlier this year in a secondary transaction, the portions above transform to huge sums. August Capital, for example, at that price point, is set to enjoy north of $600 million. That’s larger than the whole fund from which it snagged ownership, the company’s $450 million Fund VII.

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.

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