E88: Reddit IPO in Mar 2024, Shein IPO in US, Musk to build AI outside of Tesla, SpaceX partners with John Deere, SpaceX new B2B Starlink offering, Synk acquires Helios, $330m raise for Electra | Pre-IPO Stock Market Update – Jan 19, 2024

This Week in Pre-IPO Stocks

00:09 | Shein IPO in US
- Shein filed with China securities regulator for its IPO (?)
- Shein to IPO in US market (NYSE or Nasdaq)
- Last valuation was May 2023; $66b post-money valuation, $2b raise
- Company moved headquarters to Singapore from China … Singapore is a developed market (MSCI EAFE) vs China emerging market … interested to see where MSCI/FTSE Russell/S&P place Shein in indexes
01:19 | Musk to build AI outside of Tesla
- Musk wants increased ownership of Tesla if he plans to continue to build AI within company
- Currently owns 20.6%, wants 25%
- Tesla self-driving and Optimus humanoid robots are both AI focused efforts
- Musk launched xAI, an AI large language model, in 2023 and leverages X.com data in model training
02:56 | SpaceX partners with John Deere
- Starlink satellites to provide internet connectivity to John Deere farmer tractors in US and Brazil starting 2H 2024
- 30% of large US farmers reporting high-quality internet access in a 2022 survey
- Deere aims to generate 10% of its revenue through recurring models like subscription fees by 2030
03:41 | SpaceX new B2B Starlink offering
- Starlink Community Gateways provides interest service providers (ISPs) a solution to service remote areas at scale
- Community Gateways fees = one-time upfront charge of $1.25 million and fees of $75,000 per Gbps used
- Unalaska, Alaska (literally an island in the middle of nowhere) is first Community Gateways and is now live; 10 gigabits of symmetric uplink and downlink throughput with over 99% uptime
04:52 | Synk acquires Helios
- Snyk is a developer focused security company
- Helios is a Tel-Aviv tech company focused on troubleshooting and understanding microservices in production
- Acquisition price not announced
- Acquisition aims to strengthen Snyk's AppRisk service and improve security services
- $6.9b current implied secondary market valuation; -7.4% from last primary round in Dec 2022
05:58 | $330m raise for Electra
- Paris based EV charging company
- 172 active stations and 1,000 charging points across Europe
- funding will support the expansion of Electra’s network, targeting 15,000 charging points across 2,200 stations by 2030
- Electra’s prior round was in Jun 2022 where is raised $169m in debt and equity at a $168m pre-money valuation
07:40 | Reddit IPO in Mar 2024
- IPO is slated for Mar 2024 with S-1 coming by end of Feb
- Revenue has grown 20% to $800m, not yet profitable
- $5.6b current implied secondary market valuation, -43% from last round in Aug 2021
08:19 | Pre-IPO +0.57% for week
- Week winners: Deel +16.51%, OpenAI +8.37%, Klarna +6.18%, ScaleAI +5.56%, Rippling +5.29%
- Week losers: Anthropic -15.28%, Chainalysis -13.52%, Discord -2.48%, Revolut -1.95%, Notion -0.92%
- Top valuations: ByteDance $267b, SpaceX $180b, OpenAI $100b, Stripe $54b, Databricks $48b lead in current valuation