These Law Firms Scored Big on IPOs in 2019. What's in Store for 2020?
2019 was a big year for IPOs by well-known brands, and 2020 has more potentially in store.
December 30, 2019 at 08:00 AM
5 minute read
A flurry of initial public offerings hit the tech industry in 2019, putting popular brands into the public markets. But 2020 could be just as exciting.
This year brought welcome liquidity to a number of so-called unicorns—private tech companies with valuations over $1 billion. The high-profile businesses included ride-share rivals Lyft and Uber Technologies, social media platform Pinterest and indoor fitness company Peloton.
It was also an active year for the law firms representing those companies through the IPO process. Here is a list of some of the highly anticipated IPOs that came to fruition this year, and law firms that represented those companies. Together, they generated nearly $17 million in fees for their outside counsel.
Company | Legal Counsel | Underwriter Counsel | Amount Raised | Legal Fees & Expenses |
Uber | Cooley; Covington & Burling | Davis Polk & Wardwell | $8.1 billion | $5.5 million |
Lyft | Wilson Sonsini Goodrich & Rosati | Goodwin Procter | $2.3 billion | $1.4 million |
Zoom | Cooley | Wilson Sonsini Goodrich & Rosati | $356.8 million | $1.5 million |
Cleary Gottlieb Steen & Hamilton; Potter Anderson & Corroon | Skadden, Arps, Slate, Meagher & Flom | $1.4 billion | $2 million | |
PagerDuty | Cooley | Orrick, Herrington & Sutcliffe | $218 million | $1.5 million |
Slack | Goodwin Procter | Latham & Watkins | $427 million | $2.5 million |
Peloton | Fenwick & West | Latham & Watkins | $1.16 billion | $2.55 million |
However, not every private business that aimed to go public this year was successful. Co-working company WeWork halted the launch of its public offering after investors raised questions about the company's finances and its corporate governance. The New York company had turned to Skadden, Arps, Slate, Meagher & Flom for advice on the IPO, while Simpson Thacher & Bartlett represented the underwriters.
|IPOs to Watch for in 2020
While several well-known tech companies have already debuted on the public markets in 2019, it appears there is more to look forward to in 2020. Here are five expected IPOs to watch for next year.
Airbnb
Airbnb said in September that it would file for an initial public offering in 2020, but it did not give a specific timeline for its planned IPO.
The online home-sharing marketplace launched in 2008 and has grown significantly over the years. In its latest round of private financing in September 2017, the company was valued at $31 billion.
Airbnb is leaning toward going public through a direct listing, rather than an initial public offering, according to several news reports. As part of its expansion, in May Airbnb acquired last-minute hotel booking app HotelTonight, which was represented by Gunderson Dettmer. (It was reported that Skadden, Arps, Slate, Meagher & Flom attorneys advised Airbnb in the deal, but the firm did not confirm the information)
The home-rental app also previously worked with Fenwick & West for a $475 million round of financing and its acquisition of mobile social media start-up Localmind Corp. in 2014.
Robinhood
Robinhood's CEO Baiju Bhatt has confirmed the company's IPO plans and hired Jason Warnick as its CFO last year. However, the official IPO date has yet to be determined.
In its latest financing round in July, Robinhood said it raised $323 million in Series E funding at a company valuation of $7.6 billion, led by DST Global. (Gunderson Dettmer served as lead counsel to Robinhood in its Series D financing.)
In March, Robinhood acquired MarketSnacks, which was described as a daily financial news podcast and newsletter, and has re-relaunched these products as Robinhood Snacks.
Postmates
Postmates officially delayed its IPO earlier this year due to market conditions.
The third-party delivery service app announced in September that is has raised another $225 million in funding from private equity giant GPI Capital, valuing the company at $2.4 billion. Kirkland & Ellis represented GPI in the investment.
Instacart
Apoorva Mehta, CEO of the popular grocery delivery company Instacart, said at the beginning of 2019 that "an IPO is definitely on the horizon" for the company.
Instacart, founded by a former Amazon employee in 2012, is valued at around $8 billion after raising $271 million in funding in November 2017.
In May, the delivery start-up ended its partnership with Whole Foods as a result of Amazon's acquisition of Whole Foods in 2017.
Palantir
Data-mining company Palantir, co-founded by Peter Thiel, is reportedly plotting an IPO in 2020, but recent reports speculate that Palantir could delay its IPO for another two or three years.
Palantir's last funding round in 2015 left it with a reported $20 billion valuation. According to Bloomberg, Palantir is in talks with private investors to raise more funding, which could indefinitely delay its initial public offering.
|Read More
In Latest Tech IPO Frenzy, Big Brands Make for More Legal Work
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Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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