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 …read more

Source:: Business Insider


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