General
November 30, 2021
5 minutes read

Markets: Hashicorp Aims For $13B Valuation In IPO

Early this month, Hashicorp, a cloud software vendor, filed for an initial public offering (IPO). The startup unveiled an S-1…

Early this month, Hashicorp, a cloud software vendor, filed for an initial public offering (IPO). The startup unveiled an S-1 filing with the US SEC, showing its intention to list on the New York Stock Exchange (NYSE) but not the final terms of the IPO, including how much it wants to raise and at what valuation.

Now, Hashicorp has updated its S-1 prospectus showing the fundraising terms of its IPO. It’s selling 15.3 million shares for between $68-$72, totaling $1.1bn at the mid-range. At the high end of that price range, the company would be valued at $13bn, more than double its last private valuation.

Hashicorp was valued at $5.1bn from its last funding round and $13bn is 150% above that, representing a major win even for the investors that got in at that high valuation. For the ones that got in earlier, it’s much better.

Along with its fundraising update, Hashicorp also revealed its financial results for the third quarter of this year. The company brought in $82mn in revenue in Q3′ 21, compared to $55mn in the same period last year.

In the nine months ended October, Hashicorp brought in $224mn in revenue, up 49% year-over-year. The company isn’t profitable, though its high revenue growth makes up for the losses. It lost $62mn in the nine months ended October.

Hashicorp provides cloud-based versions of open-source software used by companies to manage their cloud infrastructure. It offers software tools covering various IT functions such as networking, app deployment, password management, et al.

Hashicorp divides its revenue into three segments; licensing, support, and cloud-hosted services. Among the three, support brings in the vast majority of revenue followed by licensing, then cloud-hosted services. The company says it serves over 2,000 enterprise customers.

Hashicorp has filed to list on the New York Stock Exchange with the ticker symbol “HCP“. A $13bn valuation would represent a very successful IPO for a company founded just nine years ago.