Snowflake’s blockbuster IPO means that investors like Berkshire Hathaway, Sutter Hill Ventures, ICONIQ and Sequoia made a huge return on their investments (SNOW)

Benoit Dageville Snowflake

Summary List Placement

Snowflake’s blockbuster IPO, which saw its stock soar by 112% to close at $254, could mean hefty payday for its top investors and executives.

As a private company, Snowflake had raised a total of $1.4 billion from investors, including Sequoia Capital, ICONIQ Capital, Altimeter Capital and Sutter Hill Ventures.

Snowflake wrapped up its first trading day with a market cap of about $70 billion, up sharply from its $24 billion valuation in February when it raised $479 million in a Series G round.

The company announced last week that Salesforce would buy about 2.4 million shares in Snowflake at the IPO price of $120, meaning it paid $288 million. Berkshire Hathaway simultaneously made the same $288 million commitment for 2.4 million shares as Salesforce, but also committed to buying another 4 million shares from former Snowflake CEO Bob Muglia at the IPO price, meaning that it shelled out another $480 million, adding to about $768 million total.

After the first-day pop, it appears those bets paid off: Salesforce’s new stake is now valued at some $609 million by market close, while Berkshire Hathaway’s shares are now worth about $1.625 billion — meaning that its position in Snowflake is already up by almost a billion dollars.

Meanwhile, Sutter Hill Ventures, one of Snowflake’s early investors, also appeared poised for a big return on investment with about 50 million shares, or a 20.3% stake in the company, according to the company’s IPO filing with the Securities and Exchange Commission.  That would translate to a value of roughly $14 billion.

“Sutter’s stake is sizable and they are presumably looking to exit when they can to realize gains for their limited partners,” Stephen Diamond, a professor at Santa Clara University School of Law, and an expert on Silicon Valley startups, told Business Insider. 

Sutter’s stake was followed by Altimeter Partners with a little over 36 million shares, or 14.8% of the company at the time of its IPO filing, which translates to about $10.5 billion at the closing price on Wednesday. ICONIQ, Mark Zuckerberg’s money manager, had about 34 million shares, or 13.8%, or roughly $9.8 billion, Redpoint Ventures, with an 8% stake and about 22 million shares, which comes to $6.3 billion, and Sequoia with about 21 million shares, or a 8.4% stake, which translates to about $5.9 billion.

Among Snowflake’s current and former executives, CEO Frank Slootman controls about 15 million shares, or a 5.9% stake, which could translate to about $4.2 billion. Slootman was the former CEO of ServiceNow and Data Domain, two tech companies which had successful IPOs unders his leadership. Snowflake co-founder and president of products Benoit Dageville has a 3.4% stake, or 8.4 million shares, which is about $2.4 billion.

Slootman took over as CEO last year after the sudden departure of former CEO Bob Muglia. It was reported that Muglia was ousted because he had downplayed the idea of going public soon. In an interview with Business Insider last year, Slootman called the speculation about Muglia’s exit  “the dumbest thing I’ve ever …read more

Source:: Business Insider


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