uncovering the secret sauce of a successful startup · sendgrid from startup to ipo to sale: a...

Uncovering the Secret Sauceof a Successful Startup: SendGrid

Navigating the Corporate Journey:

Private to Public to BuyoutJan. 16, 2020; Lakewood Country Club

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SendGrid from Startup to IPO to Sale:A 10-year journey

2009SendGrid Founded in

Boulder, Colorado.

“Isaac, Tim, Jose”

Techstars 2009

accelerator class.

By 2010: 2,000

Customers

12 Employees

2019Purchased by Twilio

Closed 2/1/19 in stock-

for-stock deal

$54.08 final stock

price 1/31/19

201755,000+ Customers

400+ Employees

1B+ emails/day

IPO: 11/15/17

Priced $16.00 per

share

Start Up… …to IPO… …to Sale

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Today’s Speakers

Yancey Spruill Pattie Money Matt Dubofsky

• CEO, Digital Ocean (2019)

• CFO/COO, SendGrid (2015)

• Board member: AllScripts

Healthcare; Zayo; Ping Identity

• Former Engineer & Investment

Banker

• Education: Georgia Institute of

Technology; MBA, Dartmouth

• Chief People Officer, Twilio

• Former CPO, SendGrid (2016)

• Leading Human Resources

roles at multiple firms

• Education: Masters in Human

Resource Development,

Villanova; University of

Memphis

• Partner, Cooley, LLP since

2007: capital markets

transactions; public company

representation; M&A

• SendGrid engagement (2011)

• Formerly with Skadden, Arps

• Education: Brown University;

Harvard Law

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When to go Public? Check the boxes.

Business Fundamentals

Product / Market Fit


Size of Opportunity

Management Team / Succession Planning

Processes / Controls

Alignment with Investors Market Conditions

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Business Fundamentals Processes / Controls



Size of Opportunity


Repeatability / Scalability

Infrastructure / Technology / People / Processes

Compensation Plans

SOx Readiness


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The SendGrid Culture

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Alignment with Investors

Timing and Desired Pathfor Investor Liquidity

Alignment with Board



Size of Opportunity


Market Conditions

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Compensation Plans

SOx Readiness

How to Finance a Private Company

• Financing considerations• Do we need more cash to execute our plans?

• Finding the backers / governance• Tech focused• Building a Board• Risk Appetite• Payback timing and return expectations

• Private financing Rounds: Series A-D• 5 Rounds between 2009-2016• $82M raised

• And then…do we go public? How? When?8

SendGrid from Startup to IPO to Sale: 10-year journey via multiple investment rounds

2009SendGrid Founded

2019Purchased by Twilio

Valuation: $3B

3X+ increase in less

than 15 months

20102,000 Customers

12 Employees

201214,000 Customers

114 Employees

2014-1528,000+ Customers

233 Employees

Sameer Dholakia

named CEO

Series A ($750k)

2009

Valuation <$10M

TechStars

Foundry Partners

Highway 12

201755,000+ Customers

400+ Employees

1B+ emails/day

IPO: 11/15/17

$16.00 per share

Valuation: ~$900M

Series B ($22M)

Valuation: ~$50M

2012

Bessemer

Foundry Partners

Highway 12

Series C ($21M)

Valuation: ~$200M

2014

Bain, Bessemer

Foundry Partners

Highway 12

Series D ($33M)

Valuation: ~$600M

2016

Bain

Series A-1 ($5M)

2010

Valuation <$10M

TechStars

Foundry Partners

Highway 12

Others

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Public Capital Markets Dynamics

Valuation



Size of Opportunity


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Compensation Plans

SOx Readiness

Timing and Desired Pathfor Investor Liquidity

Alignment with Board

So why and how go public?Consideration Key questions

Financing Do we need more cash?

The Deal Are the markets ready?

Which banks?

Disclosure? Internal / External

Filing / legal process – how / when?

Investor Relations What shareholders do we want?

Who should provide research coverage?

How to educate bankers / analysts / investors?

NYSE vs. NASDAQ? SEND vs. HHHH?

Employees How / when are they informed?

How does this jibe with our “Honest H” value?

“End” of Process When is the market timing just right?

How / at what level do we price?

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Nov. 15, 2017: SEND IPO at NYSE

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Along comes Twilio…

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• IPO Pricing: 11/14/17

• $16.00 / share

• Twilio purchase: 2/1/19

• SEND $54.08 / share final closing price

• 157% stock CAGR 14+ mos

Thank you.

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uncovering the secret sauce of a successful startup · sendgrid from startup to ipo to sale: a...

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