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Silicon Valley-backed meal kit provider to test $2B valuation in IPO

Meal kit provider Blue Apron filed on Thursday to go public in an offering which will test whether it can live up to its $2 billion private valuation.

The N.Y.C.-based business could get an edge over numerous competitors in the food and meal delivery industry with a successful offering. It has set a preliminary goal of raising $100 million in the offering.


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Menlo Park-based Bessemer Venture Partners is the company’s biggest shareholder, with a nearly 24 percent stake. San Francisco-based First Round Capital is the next biggest venture stakeholder, owning about 10.5 percent of its shares. Blue Apron raised nearly $200 million in funding since it was founded in 2012.

The filing highlighted the losses and marketing costs of Blue Apron, which has shown signs of stalled growth.

Blue Apron’s net loss grew to $54.8 million last year. That’s a 16 percent increase from 2015, according to the New York Times. Earnings before interest, taxes, depreciation and amortization (Ebitda) show a loss of $43.6 million, up 32.5 percent from the year before.

Blue Apron’s marketing costs, as well as the rising cost of ingredients and a decreasing number of orders per customer, have also made business tough for the startup.

Still, Blue Apron maintains the title of “biggest player” in the sector, despite rising competition from the likes of Plated, also based in New York, and Berlin-based Hello Fresh, which operates stateside.

A trio of California purveyors in the meal-delivery space have sprung up as well, including San Francisco-based Sprig; Palo Alto-based Gobble, whose founder we featured in a podcast; and El Segundo-based Chef’d, which has partnered with magazines and Weight Watchers.

Maple, another rival, struggled and was eventually scooped up by Deliveroo, a UK-based food delivery company.

Rumors of a Blue Apron IPO first sprung up in October, courtesy of Recode. At the time, it was believed that the 4-year-old company would be valued at $3 billion when it finally went public.

“One of the fundamental opportunities that we have is we’re able to take a lot of links out of the supply chain,” cofounder and CEO Matt Salzberg told the New York Business Journal after the company’s $135 million Series D announcement. “We can plan [customer meals] all the way back to the farm and take a lot of waste out of the system.”

Blue Apron plans to trade under the symbol “APRN.”

The company has tapped Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Citigroup Inc. (NYSE: C) and Barclays PLC to help with the IPO.

Anthony Noto is a multimedia journalist focused on venture capital and Silicon Alley startups. Based in New York for the Business Journals, he previously was a reporter at SourceMedia and The Deal LLC. He is a graduate of Rutgers University.

Silicon Valley Venture Capital Survey – First Quarter 2017

Click here for the full survey.

Background

This report analyzes the valuations and terms of venture financings for 191 companies headquartered in the Silicon Valley that raised capital in the first quarter of 2017.

Overview of Results

Venture valuations improved slightly in Q1 2017 compared to the prior quarter, with valuation metrics now flat with their 13-year averages after falling from 2015 peaks. The hardware industry had the strongest valuation results in the first three months of 2017.

Valuations Stabilize
Venture valuations showed improvements in Q1 2017 compared to Q4 2016, and valuation metrics are now generally flat with their 13-year averages after having fallen from all-time highs in mid-2015.

Hardware Sector Stands Out
The hardware industry recorded the strongest valuation results in Q1 2017, with the Fenwick & West Venture Capital Barometer™ showing an average price increase of 81% in Q1 2017, up from 50% in Q4 2016.

Valuations Improved for Later Stage Investments
The Barometer showed an average price increase for Series D and E+ rounds of 45% and 60% in Q1 2017, an increase from the 16% and -1% recorded in Q4 2016.

Investor-Favorable Deal Terms Increase
The use of investor-favorable deal terms, including multiple liquidation preferences, participation rights and cumulative dividends, increased in Q1 2017.

Download complete results of the survey with related discussion.

May God Bless and Protect our Troops.

Please always remember “Freedom is NOT Free”

With “Thanks, Gratitude & Respect”

Never Forget – “Freedom is Not FREE”.   Please read this article and HONOR those who have served, are serving and will serve their country.

Proud American

Memorial Day: Reflections of an Army widow

Bauguess family

“Freedom is never more than one generation away from extinction.

 We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.”

—President Ronald Reagan

May is traditionally a month of delight and expectation. Summer is drawing near, the school year will end soon, pools begin to open, maybe a beach trip is planned. I look forward to all of that. But, for me and my family, an underlying twinge of pain, sadness and loss invades our hope and anticipation of an otherwise joyful month.

On May 14, 2007, my world flipped upside down. My husband, Army Major Larry Bauguess, was serving in his dream job, deployed to Afghanistan, as an operations officer in the 82nd Airborne Division. Larry was a warrior and a gentleman and, true to his roots, he was participating in a peace meeting in Pakistan.

By all accounts, the historic meeting was successful. The Afghani, Pakistani and U.S. leadership had reached an agreement. The leaders from all three sides shook hands, exchanged coins and posed for pictures. A short while later, a uniformed Pakistani Frontier Guardsman, who had the mission to provide security for our troops, instead raised his rifle, took aim and opened fire. Larry stood between the shooter and his men. On his feet, he protected his men and took the brunt of the assault.

Our tiny daughters Ryann and Ellie and I were in our home at Fort Bragg, North Carolina, when the notification team came to deliver the heartbreaking news. The sound of the doorbell startled me. I remember walking to the door on that beautiful May afternoon expecting to see a little one on our front porch wanting to play with my girls. When I looked through the peephole, I saw something entirely different.

Through the tiny glass tunnel, I saw a man dressed in army greens. As I pushed away from the door, blood rushed to my face and a cold chill raced up my spine. When you’ve been in and around the Army for as long as we have, you know what it means when a man dressed in an army-green suit with a chest full of ribbons comes to your house during a time of war.

Since that day, my daughters and I have had quite a journey of heartache and pain, but we have had joyful moments, too. We work very hard to strike a balance. We lean on our faith. We follow Larry’s example.

We miss him. Every. Single. Day. We feel his void in everything we do, even 10 years later. But, we have chosen to drive on in a manner that, we hope, has honored him. If we didn’t do that, if we had quit, if we had given up on life or felt sorry for ourselves even for a minute, Larry Bauguess would come down here and say, “I didn’t give my life so you could stop living yours.” He would tell us to drive on. He would say, “Live your life. The best way to honor me is to get back out there and continue to live.”

I know he would say that to me, and I would say the exact same thing to him. So, we drive on. We live our lives, and we live in a way that we hope brings honor to him.

So, this Memorial Day, enjoy the pool. Enjoy the beach trip. Relish in the fact that the school year is almost over and summer is right around the corner. But, please, remember those intrepid Americans who, for decades and decades, have given that last full measure of devotion. Remember those who have given their lives to provide the blanket of freedom that allows us to live free. Never forget their sacrifice. Pray for the families left behind. And always remember that, though it absolutely is worth fighting for, freedom isn’t free. 

Wesley Bauguess is an Army veteran and widow. Her book, God, Country, Golf: Reflections of an Army Widow, releases from Westbow Press on May 14, 2017, the 10th anniversary of her husband Larry’s courageous sacrifice in service.

 “Corporate Governance”, “Early Warning Signs” and “Maximizing Value” for under-performing/distressed venture backed Intellectual Property companies that I presented at Stanford University. This video will be used in the Stanford Engineering School via STVP (Stanford Technology Ventures Program) and SCPD (Stanford Center for Professional Development).                      by Steven R. Gerbsman

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San Francisco, May, 2017
Below is a video taped  presentation on “Corporate Governance”, “Early Warning Signs” and “Maximizing Value” for under-performing/distressed venture backed Intellectual Property companies that I presented at Stanford University.  This video will be used in the Stanford Engineering School via STVP (Stanford Technology Ventures Program) and SCPD (Stanford Center for Professional Development).

Aside from Gerbsman Partners core business of maximizing value utilizing its proprietary “Date Certain M&A Process”, Gerbsman Partners has been assisting equity and senior lenders “Identifying the Early Warning Signs & Maximizing Value for Underperforming and Distressed Portfolio companies”.

By background, since 2001, Gerbsman Partners has focused and been involved in maximizing enterprise and Intellectual Property value for 98 venture capital/private equity backed and /or senior lender financed, technology (software, mobile, telecom, optical networking, internet, digital commerce, cyber-security, etc.), life science, medical device, solar, fuel cell and low tech companies through Gerbsman Partners proprietary “Date Certain M&A Process”. Gerbsman Partners has also terminated/restructured over $ 810 million of prohibitive real estate and equipment leases, sub-debt and creditor issues. Gerbsman Partners also assists US, European and Israeli technology, digital marketing, and medical device companies with strategic alliance development, M&A and licensing and distribution of proprietary content.

Gerbsman Partners has offices and strategic alliances in San Francisco, Orange County, McLean, VA, New York City, Boston, Europe and Israel.

Identifying Early Warning Signs & Maximizing Value of Distressed Portfolio Companies – Presentation at Stanford University by Mr. Steven Gerbsman.

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Please visit the attached link to view the program. Click here.
I also was the moderator for a panel on the same subject that consisted of Marc Cadieux, Chief Credit Officer of Silicon Valley Bank, Peter Gilhuly, Esq., Partner at Latham & Watkins and Michael Scissions, Entrepreneur/CEO and former head of Facebook Canada.
Please review and hopefully the information will assist in “Identifying the Early Warning Signs” and provide “food for thought”.

GERBSMAN PARTNERS 415 505 4991
Email: steve@gerbsmanpartners.com
Web: www.gerbsmanpartners.com
BLOG of Intellectual Capital: blog.gerbsmanpartners.com