But should you invest in the Weedmaps SPAC IPO? Here’s what we know…

Weedmaps Stock: The Business

Justin Hartfield and Keith Hoerling founded Weedmaps in 2008. It’s a technology company focused on the cannabis industry. Headquartered in Irvine, California, Weedmaps has more than 400 employees. It also has offices in Denver, Tucson, New York, Barcelona and Toronto.

Weedmaps claims it’s the leading technology and software infrastructure provider for the cannabis industry. It provides a two-sided marketplace, serving both customers and retailers as well as software as a service (Saas), including B2C and B2B.

The company’s marketplace keeps consumers up to date on information such as the availability of products and allows them to place orders with retailers. Customers can also rate and review businesses as well as their products. And as more states continue to legalize cannabis consumption, Weedmaps could be well-positioned to take advantage. That’s one reason the Weedmaps IPO is coming to market soon.

The Cannabis Market

Weedmaps is unique among cannabis-related companies. Many cannabis businesses aren’t able to list shares in the U.S. because they involves selling marijuana or “plant touching.” However, Weedmaps doesn’t do this. It’s simply a third-party tool.

And there’s a reason the Weedmaps stock announcement came when it did. It was less than a week after the House of Representatives voted to decriminalize marijuana. And now more than 30 states allow some form of cannabis use, whether medicinally or recreationally.

Weedmaps vs. DOJ

But it’s not all rainbows and butterflies for the Weedmaps IPO. You might be wondering why the company hasn’t gone public yet when the announcement was six months ago. The answer is the company was involved in a federal investigation. And as far as the filings tell, the situation is “unresolved.”

The U.S. Department of Justice (DOJ) subpoenaed company records for the company’s business dealings back in 2019. The filings state…

As of November 10, 2020, the DOJ investigation has not been resolved. In our dialogue with the DOJ, we have had productive discussions about a potential resolution, but no agreement has been reached… Following an initial production of documents in November 2019, further productions responsive to the subpoena have been postponed pending discussions about resolving the matter.

The subpoena identified 100 companies and individuals. Weedmaps believes the DOJ is focusing on unlicensed retailers, particularly in the state of California. The DOJ has not currently filed any charges.

However, some analysts are bullish on Weedmaps stock. After the company announced it was going public via SPAC IPO, shares of the special purpose acquisition company (SPAC) jumped, reaching a peak of $28.71 in February. It opened at $17.37 on June 10, 2021.

For those interested in the Weedmaps IPO, it’s important to know the company didn’t choose a traditional IPO.

Weedmaps SPAC IPO

A SPAC is also referred to as a blank-check company. These companies don’t have business operations. Instead, they go public with a traditional IPO in order to raise capital. Those funds are used to acquire a private company. In this case, Weedmaps is combining with SPAC Silver Spike Acquisition (Nasdaq: SSPK).

WM Holdings is the parent company of Weedmaps. CEO Chris Beals commented…

We are thrilled to partner with Silver Spike to transition WMH to our next phase of growth as a public company. We passionately believe in the power of cannabis and the importance of enabling safe, legal access to cannabis for consumers worldwide. With this merger, we will be able to continue scaling the Weedmaps marketplace in the U.S. and internationally in service of our users while expanding the functionality of our WM Business SaaS offerings in service of our clients. Our partnership with Silver Spike will provide us a stronger platform to advance our mission to advocate for legalization, social equity and licensing in many jurisdictions while providing cannabis businesses with the tools needed to succeed in a highly complex world of regulations. I am grateful for the continued support from my teammates and investors and most thankful for the thousands – and what I expect over time to be hundreds of thousands – of business clients on our platform. We are energized by the opportunities to continue helping our business clients thrive as regulated cannabis markets expand and grow.

Silver Spike CEO and Chairman Scott Gordon added…

We believe WMH is the most compelling investment opportunity in cannabis today. We established Silver Spike Acquisition to identify and partner with a best-in-class company and proven management team that are well-positioned to benefit from the macro drivers surrounding cannabis. We wanted to not only assist them with the transition to the public markets but also create a unique opportunity worthy of institutional investors. WMH is the perfect expression of our vision for Silver Spike Acquisition.

So what are all the details you need to know about Weedmaps stock?

Weedmaps Stock Details

The Weedmaps SPAC IPO gives the tech company a post-transaction value of $1.5 billion. This is assuming a $10 share price with a committed PIPE. The transaction is expected to provide up to $575 million, including $325 million from the PIPE. PIPE commitments include investors such as AFV Partners, the Federated Hermes Kaufmann Funds and Senvest Management LLC.

For more details on the Weedmaps IPO, you can look at the company’s prospectus filed by Silver Spike Acquisition.

Are you looking for the latest investment opportunities? Then sign up for our free Profit Trends e-letter! It’s full of helpful tips and research from our investing experts. And if IPO investing interests you, check out our IPO Calendar to stay up to date on the market’s latest opportunities.

When is the Weedmaps IPO date? Voting to approve the business combination took place on June 10, 2021, at 10 a.m. Upon approval, Weedmaps stock will trade on the Nasdaq under the symbol MAPS and warrants will list under the symbol MAPSW.

The post Weedmaps Stock: Everything to Know About This Cannabis SPAC IPO appeared first on Investment U.

But will this space company go public any time soon? Here’s what we know…

Relativity Space Stock: The Business

Tim Ellis and Jordan Noone co-founded Relativity Space in 2015. After founding the 3-D printing division at Blue Origin, Ellis moved on to establish his own space company. Relativity Space is an aerospace company using 3-D printing technology to manufacture its aircraft.

In an interview with TechCrunch, Ellis stated…

I think really the thing people haven’t gotten about our approach, or 3D printing in general, is it’s actually more like transitioning from gas internal combustion engines to electric, or on-premise service to cloud. 3D printing is a cool technology, but more than that, it’s actually software and data-driven manufacturing and automation technology.

Relativity Space claims it can manufacture a rocket in less than 60 days. And not only does it print rockets, it also prints the engines. The company’s newest engine, Aeon R engines, will be capable of 302,000 pounds of thrust.

The company has two aircraft it’s printing. The first rocket debuted was the Terran 1. Not only is this Relativity Space’s first aircraft to be made, it’s also the first 3-D printed rocket. The Terran 1 is an expandable rocket designed for small payloads.

Relativity Space’s second rocket is the Terran R. Standing at 216 feet tall, this rocket is designed for payloads up to 20,000 kg for low-earth orbit (LEO). It will also be reusable, similar to SpaceX’s aircraft.

But if you’re wondering when Relativity Space stock will be here, let’s look at where the company is in its progress.

Company Mission Progress

In December 2020, Relativity Space announced its first mission aboard the Terran 1. The agreement is with TriSept, a provider of launch integration and program management services. Some of its customers include the U.S. Department of Defense and NASA for classified payload missions. Although the agreement is for 2022, Relativity Space is hoping to launch the Terran 1’s first orbital flight by the end of 2021.

Additionally, it wasn’t until June 8, 2021 the company revealed the Terran R. Relativity Space hopes to start launching the new rocket by 2024. It plans to launch the Terran 1 later this year from Launch Complex 16 at Cape Canaveral, and it hopes to launch the Terran R from the same site.

The Terran R marks a number of events for the hope of Relativity Space stock. The rocket was designed for the growing demand for large constellation launch services, such as SpaceX’s Starlink. And the company already secured nine contracts from private and government customers.

But Relativity Space is excited because it claims the Terran R puts the company leaps forward to its mission of multiplanetary human life. Ellis said…

When we founded Relativity, the inspiration was watching SpaceX land rockets and dock with the space station. They were 13 years old and they were, despite all of that pretty inspiring success, the only company that wanted to make humanity a multi-planetary and go to Mars. And I thought that 3D printing tech was inevitable to actually build an industrial base on another planet. No one else had actually even tried to go to Mars or said that was their core mission. And that’s still true today, actually, even five years later, it’s still just us and SpaceX. And I really do hope to inspire dozens to hundreds of companies to go after that mission.

However, Jeff Bezos made it clear he has the same lofty goal for Blue Origin. Now, investors are waiting to see which space IPO will come first. But why do some analysts think a Relativity Space IPO could be near? The answer is pretty simple…

Relativity Space IPO: Series E Funding

On the same day Relativity Space revealed its Terran R rocket, the company also announced the closing of its latest funding round. The Series E funding brought in $650 million in equity. Fidelity led the round with participation from BlackRock, K5 Global, Soroban Capital, and Shark Tank’s Mark Cuban, just to name a few.

As a result, the company has raised a total of $1.34 billion since founding. And Relativity Space’s valuation is unicorn status at $4.2 billion. This is a big increase from its November valuation of $2.3 billion.

Relativity Space will use the newly raised funds to accelerate company growth, both in increasing the number of employees and staying on schedule. The company claims its Terran 1 rocket that should be launched by the end of 2021 is about 85% completed.

So, the big question: when will Relativity Space IPO?

Will Relativity Space Go Public?

Unfortunately for investors, there are no plans for Relativity Space stock any time soon. Ellis believes he won’t need to take the company public any time soon and continues to find what he needs in the private market. Ellis also told CNBC that Relativity Space received higher offers for fundraising. The company decided to go with Fidelity, however, due to its prestigious reputation.

Are you looking for the latest investment opportunities? Then sign up for our free Profit Trends e-letter! It’s full of useful tips and research from our investing experts. And if IPO investing interests you, check out our IPO Calendar and Top Recent IPOs to stay up-to-date on the market’s latest opportunities.

It looks like investors won’t see a Relativity Space IPO date any time soon. But once the company has successfully launched a mission, investors may want to keep an eye out for Relativity Space stock.

The post Relativity Space Stock: Will This SpaceX Competitor Go Public? appeared first on Investment U.

Krispy Kreme Stock: The Business

Vernon Rudolph founded Krispy Kreme Doughnuts in 1937. Based in Winston-Salem, North Carolina, the doughnut franchise is known for its original glazed doughnuts and its famous “Hot Now” signs. Now the company’s doughnuts can be found in 12,000 grocery and retail stores across the U.S. and 1,400 shops in 33 countries.

Recently, Krispy Kreme opened its biggest location yet: Times Square. This is a 24/7 shop coming in at 4,500 square feet. According to the company, the shop is capable of producing 4,560 doughnuts every hour, including an exclusive “Big Apple” donut. Other features include a glazing waterfall and a doughnut-making theater with stadium seating.

Dunkin’ is the company’s largest competitor. It recently went private, pulling from the public markets. The company was acquired by Inspire Brands, the owner of Arby’s, for $8.76 billion. And in the wake of the transaction, Krispy Kreme announced a Krispy Kreme IPO. At the time, the filings were private. But now the filings are public for all to see. Let’s take a look…

The Market

Global Position

According to the Krispy Kreme IPO filing, the company believes it has a strong position to take advantage of the global indulgence market. This market is estimated to be worth $650 billion.

On one hand, Krispy Kreme claims it developed a 94% aided awareness in its tracked markets. On the other hand, it also admits that a small portion of the global population has the geographic proximity to a Krispy Kreme store or retail partner.

Some analysts are wary of Krispy Kreme’s market, claiming trends are leaning more toward healthier lifestyles. But the doughnut maker is bullish on the indulgence market, saying the category is historically recession-resistant. It backs the claim up by providing data from the last two financial crises. The 2007 to 2009 crisis saw a 4% category growth. And the COVID-19 pandemic showed 4.3% year-over-year growth. So how does Krispy Kreme plan to tackle the growing market?

Emotional Connections With Local Communities

1. Creating experiences. The company has Hot Light Theater Shops. When the shop’s “Hot Now” sign is on, the doughnuts are being freshly made and anyone can go watch. Additionally, the company uses seasonal products, such as holidays and events, to help people celebrate.
2. Acts of Joy. The goal of these is for the company to create an emotional connection to its customers. Some examples include “Healthcare Monday” where Krispy Kreme offered unlimited doughnuts to healthcare workers in 2020 as a thank you. It gave 4.2 billion earned media impression and more than 1,800 media placements.
3. Raise Dough for Your Cause. Krispy Kreme offers local community organization a way to raise money. Not only is the company able to be part of fundraising events, it also serves as an introduction and increases brand awareness.

The company also gave insight into its growth strategies ahead of the Krispy Kreme stock debut.

Krispy Kreme Stock: Growth Strategies

The first growth strategy listed is increasing trial and frequency. Like any company and industry, innovation is key. Krispy Kreme focuses on continuing to expand its offerings and delivering a high-quality indulgent experience. Additionally, it aims to link product launches with events that have meaning with communities and customers.

Another strategy is to expand its omni-channel network in both new and existing markets. Krispy Kreme uses a hub and spoke model, according to the IPO prospectus. The company admits that despite its brand awareness, it doesn’t have any significant presence in major U.S. markets and cities, such as Boston and Minneapolis. Krispy Kreme also identified markets outside of the U.S., including China, Brazil and part of Western Europe.

In the Krispy Kreme IPO prospectus, the company says it plans to grow its network in three ways. The first is to increase its physical presence. This includes Hot Light Theater and Fresh shops. The second is to focus on e-commerce and delivery, an option growing in popularity since the pandemic. Krispy Kreme aims to make its products easily accessible with options such as delivery, gifting, in-office catering and business solutions. And finally, the company will grow its third-party retail channel.

The last growth strategy listed involves Insomnia Cookies, a company Krispy Kreme took majority stake of in the last few years. The cookie company targets younger consumers, namely college students. It leverages an e-commerce platform, which created 54% of sales. The company added 17 new stores in 2020 and plans to add an additional 30 in 2021.

With these growth strategies in mind, let’s move on to an important section: the finances.

Financial Data

When it comes to Krispy Kreme stock, investors will note the company’s history in revenue growth. In 2018, the company reported total revenue of $795.9 million. It grew to $959.4 million in 2019 for a growth rate of 20.5%. And for 2020 (year ended January 3, 2021), total revenue increased to $1.122 billion. That’s a growth of about 16%.

However, the Krispy Kreme IPO prospectus shows the company isn’t making a profit. Instead, the company continues to report net losses attributable to Krispy Kreme, Inc. In 2018, this number was $14.1 million. That loss grew in 2019 to $37.4 million. And in 2020, the company’s attributable net loss was $64.3 million.

Additionally, Krispy Kreme’s balance sheet shows the company has $50.7 million in cash and equivalents as of April 4, 2021. But it also shows a working deficit of $328.9 million and debt of $1.205 billion. Under use of proceeds, the company states…

We intend to use the net proceeds that we receive from this offering to repay outstanding indebtedness under the revolving credit facility portion of our 2019 Credit Facility and the Related Party Notes, with the remainder to be used for general corporate purposes.

With all of this information in mind, let’s look at all of the revealed details for Krispy Kreme stock.

Krispy Kreme IPO Details

Krispy Kreme confidentially filed in early May 2021. And on June 1, the company made the documents public to investors. Although there is no confirmed Krispy Kreme IPO date, price range or offer shares, there are a couple of things investors do know.

The company filed for Krispy Kreme stock to trade on the Nasdaq under the ticker symbol DNUT. This is the same exchange Krispy Kreme traded on in its original 2000 IPO. And even though we don’t have a confirmed date, the SEC states confidential filings must be made public no later than 15 days before the IPO date. This means investors could expect the Krispy Kreme IPO as early as June 16, 2021.

For more investment opportunities, sign up for our free Liberty Through Wealth e-letter! It’s full of useful insight and research from our investing experts. If IPO investing interests you, check out our top recent IPOs and IPO calendar to stay up-to-date on the market’s latest opportunities. And if this opportunity interests you, don’t forget to come back as more details on the Krispy Kreme stock offering become available.

The post Krispy Kreme Stock Is Almost Here: What to Know About the DNUT IPO appeared first on Investment U.

But is Joby Aviation a good investment opportunity? Here’s what we know…

Joby Aviation Stock: The Business

Joby Aviation is a transportation company. It’s focused on developing all-electric, vertical take-off and landing (eVTOL) aircraft. The goal is to use them as commercial passenger aircraft starting in 2024.

JoeBen Bevirt founded Joby Aviation back in 2009. Bevirt is referred to as a serial entrepreneur who has started multiple companies. Joby Aviation started on Bevirt’s ranch in Santa Cruz. It was originally self-financed by Bevirt himself, using funds from previous company exits. Since then, the company began operating subscale prototypes in 2015 and has grown to 700 employees today.

Joby Aviation is leading a new form of transportation, and it’s attracting a lot of attention from some big names. The company estimates the U.S. market opportunity for aerial mobility to be more than $500 billion. And the global market is expected to exceed $1 trillion. So, let’s take a look at the competition Joby Aviation stock will face in this market.

Competition

Joby Aviation isn’t the only eVTOL company in the race. There are three going public, and the other two are Archer and Lilium. All three anticipate commercialization by 2024, but it seems Joby Aviation could be the only one to meet that goal.

Archer also recently announced a merger agreement with Atlas Crest Investment Corp. (NYSE: ACIC) whose stock is listed on Archer’s website for investors. Archer has yet to reveal a prototype. However, rumors claimed it would reveal its first prototype in May 2021. And on May 21, Archer announced it will be presenting at the Wolfe Research Global Transportation & Industrials Conference.

Lilium is a German eVTOL company. It’s also expected to go public with a reverse merger. This news came almost a year after a failed fundraising round. Additionally, its full-scale prototype was damaged in a ground fire during maintenance activities, according to Lilium’s announcement last year. So, investors aren’t expecting Lilium to meet its lofty timeline goals.

But not only is Joby Aviation ahead of its competition, the company also has some household names as its partners.

Strategic Partnerships and Investors

Some investors in Joby Aviation stock include Uber and Toyota. Joby Aviation acquired Uber Elevate, Uber’s department focused on aerial ridesharing. Under the agreement, both companies will integrate their services into each other’s apps.

In 2020, Toyota led Joby Aviation’s Series C funding round. It raised $620 million. The companies also have a strategic partnership where Toyota engineers work alongside Joby Aviation. Projects include factory layout and manufacturing processes, according to the Joby Aviation stock announcement. Joby Aviation plans to begin construction on a 450,000 square foot manufacturing facility in partnership with Toyota towards the end of 2021.

Additionally, in December 2020, the U.S. Air Force granted Joby Aviation approval for an eVTOL aircraft as part of its Agility Prime program. The program is designed to accelerate commercial adoption of electric aviation.

And lastly, the company agreed to a G-1 certification basis for its aircraft with the Federal Aviation Administration. This is a list of specific requirements Joby Aviation’s aircraft must meet to be certified for commercial operations. The company claims it’s the first eVTOL aircraft to get this, making it a big milestone for Joby Aviation stock.

Documentary

The company also received attention recently from a NOVA documentary that aired on PBS May 26. The NOVA documentary was titled “Great Electric Airplane Race.” The filmmakers were given exclusive behind-the-scenes access to Joby Aviation’s facilities back in October 2020. The documentary includes executive interviews and demonstrations.

Producer, Director and Writer Miles O’Brien commented…

Joby blew me away. Just to see that aircraft fly, to see the level of competency, the infrastructure, the vertical integration . . . I was just amazed at how far down the road [founder JoeBen Bevirt] has gotten in stealth. This film looks at the electrification of aviation in a way that no media has touched on before. Electric flight is going to change not just the way we fly, but how we move around in general. As a pilot myself, I was truly amazed at how far along the technology is and how close we may be to electric aviation becoming a broader reality.

The news increased investor interest in the upcoming Joby Aviation IPO. But as mentioned before, the company isn’t going public with a traditional IPO but instead a SPAC IPO.

Joby Aviation and Reinvent Technology

A special purpose acquisition company (SPAC) is a company with no business operations. They’re also referred to as “blank-check companies.” These companies go public in order to raise capital in an IPO. Those funds are put into a trust until it can find a suitable acquisition. Once an acquisition is made, the private company becomes a publicly traded company. In this case, Joby Aviation is the acquiree and Reinvent Technology Partners is the SPAC.

In the announcement, Bevirt stated…

For the last decade, we have been laser-focused on one task – developing the best possible technology for this market. But our long-term vision has always been to build a global passenger service, helping a billion people to save an hour every day, while contributing to the protection of our precious planet. Today’s transaction lets us look ahead to the next decade and provides us with the resources we need to bring our vision to life. Since our very first meeting it was clear that Reinvent shared our fundamental desire to have a positive, long-term impact on the world and we couldn’t be more excited to welcome them onboard.

Co-Lead Director of Reinvent Technology Partners Reid Hoffman will join the combined Board of Directors. He added…

Reinvent invests in world-class founders and teams who are developing industry-leading products and services that have the potential to impact millions of lives. In Joby we see a remarkable founder-led team that has quietly delivered the most advanced technology we’ve seen in this sector. With valuable strategic partnerships including Toyota and Uber, a compelling business model and an unparalleled track-record of executing against its targets, we believe Joby is well-positioned to create a transformative new human-centered mobility network. Through our venture capital at scale approach, we are committed to Joby’s long-term success as it continues on its journey to revolutionize commutes and drive decades of innovation in human movement.

So for those interested in Joby Aviation stock, here are the details.

Joby Aviation SPAC IPO Details

The deal gives Joby Aviation a pro forma valuation of $6.6 billion. This is at a $10 per share PIPE subscription price. When the transaction closes, the company expects up to $690 million from Reinvent Technology Partners’ trust. It expects the PIPE to total $835 million. Joby Aviation also said it will convert a $75 million convertible note into common stock at the $10 stock price.

Also, there is a five-year lock-up agreement and price-based vesting on certain sponsor shares. The goal is to ensure long-term alignment as some shares won’t vest until Joby Aviation reaches a $30 billion market cap.

If you’re looking for the latest investment opportunities, sign up for our free Profit Trends e-letter! It’s full of useful advice and research from our investing experts. And if IPO investing interests you, make sure you check out our Top Recent IPOs and IPO Calendar so you can stay up-to-date on the market’s latest offerings.

In the company’s announcement, it did not reveal what ticker symbol Joby Aviation stock will trade under. However, the company will list on the NYSE. Similarly, there is no Joby Aviation IPO date. But the company said the agreement is expected to close in Q2 2021, pending shareholder approval and market conditions.

The post Joby Aviation Stock Is Almost Here: What to Know About the SPAC IPO appeared first on Investment U.

Vimeo Stock: The Business

Zach Klein and Jake Lodwick founded Vimeo in 2004. Vimeo is an American video hosting, sharing and services platform. Headquartered in New York City, the company aims to deliver high-definition video across a number of devices. Vimeo’s business model is software-as-a-service (SaaS).

According to Vimeo’s website, the platform has more than 200 million users and 1.6 million paid subscribers. These users are in more than 190 countries. Additionally, Vimeo claims 350,000 new videos are added each day. And the platform has over 100 billion video views.

Vimeo serves corporate companies, but also content creators and entrepreneurs. And as the world begins to find its new normal post-COVID-19, video communication continues to be a popular media. So it’s not surprising that IAC chose now to offer up Vimeo stock.

Finances and Market

On May 5, 2021, Vimeo released its first quarter revenue report. In the first quarter of 2020, Vimeo recorded revenue of $57 million. In the first quarter of 2021, that figure increased to $89.4 million for growth of 57%. Additionally, Vimeo went from a net loss of $20.3 million in 2020 to net earnings of $3.3 million in 2021.

Vimeo expects the SaaS market to be worth $70 billion by 2024. The company claims it’s positioned to take advantage of the growing market. That’s because it’s the go-to platform for local shops and Fortune 500 businesses alike.

On the Vimeo stock spinoff, CEO Anjali Sud commented…

As a video software solution serving more than 200 million professionals, teams and organizations, Vimeo is making professional-quality video far easier and more effective than ever before. This is a proud moment for Vimeo, but just the beginning. Looking ahead, as an independent public company, we are well-positioned to keep innovating with urgency to expand our software suite and put the full power of video in the hands of every business and team in the world.

Board of Directors

Additionally, the company announced an entire board of directors specifically for the new spinoff company. There are 11 members:

• Joey Levin, chief executive officer, IAC (chairman of the board)
• Adam Gross, technology investor and software industry veteran
• Alesia Haas, chief financial officer, Coinbase
• Kendall Handler, general counsel, IAC
• Ida Kane, chief financial officer, Appfolio
• Mo Koyfman, founder and general partner, Shine Capital
• Spike Lee, film director, producer, screenwriter, actor and professor
• Nabil Mallick, general partner, Thrive Capital
• Glenn Schiffman, chief financial officer, IAC
• Anjali Sud, chief executive officer, Vimeo
• George C. Wolfe, playwright, film and theater director

IAC CEO and Vimeo Chairman of the Board Joey Levin stated…

Vimeo has been part of IAC for 14 years, growing into a strong industry leader ready to stand on its own. Hard to believe that what started as a small team inside College Humor is now positioned to become a big public company with a world-class board of directors. Vimeo represents the best of IAC – a long-term investment with a product that delights users in a large and growing market, an incredible management team, and big ambition.

Some other companies IAC has spun off publicly include Match Group (Nasdaq: MTCH) and Angi Inc. (Nasdaq: ANGI), a combination of IAC’s HomeAdvisor and Angie’s List. IAC continues to acquire and spin off companies, with Vimeo being its 11th. Barry Diller, chairman and senior executive of IAC, said, “It appears there is validation in repetition. On to the 12th.”

So let’s look at what the Vimeo stock transaction entailed.

Vimeo Becomes a Publicly Traded Company

On May 25, 2021, IAC announced it completed the spinoff IPO of Vimeo. But this wasn’t a typical IPO. A spinoff creates a new independent company with new shares. Under the transaction agreement of the Vimeo spinoff, IAC shareholders received 1.6235 shares of Vimeo stock for each share of IAC stock held as of May 24, 2021.

Vimeo stock began trading on the Nasdaq under the ticker symbol VMEO. Shares of Vimeo stock opened at $47.15 Tuesday morning.

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Bright Health IPO: The Business

Bob Sheehy founded Bright Health in 2015. Bright Health is a health insurance company. Its headquarters are in Minneapolis, Minnesota. Sheehy served as CEO until he stepped down in 2020 to serve as Executive Chairman of the Board. Bright Health’s current CEO is George Lawrence Mikan III.

Bright Health’s NeueHealth business has 28 primary care clinics that care for almost 75,000 unique patients as of April 2021. About 30,000 of those patients are served through value-based arrangements, with a Net Promoter Score of 78. NeueHealth also manages care for an additional 33 clinics through the company’s Value Services Organization.

Bright HealthCare, the company’s other business, serves 623,000 customers. This includes 515,000 commercial customers and 108,000 Medicare Advantages customers. Bright Health is present in 14 states and defines 99 core-based markets.

At its founding, Bright Health was made to concentrate on the Affordable Care Act for individual plans. Since then, the company says it has expanded its offerings, including Medicare Advantages plans. And since the world is just starting to fully come out of the COVID-19 pandemic, it’s not surprising Bright Health and its competitors are offerings IPOs.

Bright Health Stock: The Market

Challenges

Unsustainably High Costs: The Bright Health IPO prospectus cites that U.S. healthcare spending will reach $4.2 trillion in 2021. This is about $12,641 per person, and it’s a greater per capita healthcare spend than any other country in the world. When comparing cost and life expectancy to OECD countries, Bright Health estimates U.S. healthcare wasted spending ranges from $760 billion to $935 billion, or about 25% of total spend.

Negative Consumer Experience: Bright Health claims that focusing on employer-centric models creates a lack of personalization. This makes PPO networks expensive and inefficient.

Misaligned Incentives: According to the prospectus, only 2.9% of U.S. healthcare spending went towards preventative care in 2018. Bright Health believes the traditional fee-for-service (FFS) reimbursement model rewards reactive instead of proactive health approaches.

Lack of Access to Affordable Quality Care: The Bright Health IPO prospectus cites Commonwealth Fund. It claims 45% of U.S. adults who are uninsured said they had a medical problem but didn’t see a doctor due to cost concerns.

Opportunity

Growing Retail Markets: Bright Health estimates the Medicare Advantage market will grow 10% over a five-year period from 2019 to 2024. This will be a growth of $170 billion over the time frame. Additionally, the Medicare market will exceed $1 trillion by 2023. And finally, Bright Health says the IFP market is stable between 11 million and 12 million individuals covered since 2015. The company, however, expects this to grow.

Shifting Employer Markets: The company claims the employer segment is changing to a more consumer-direct approach. One product Bright Health thinks will help with this shift is individual coverage health reimbursement arrangements (ICHRAs). Another thing is administrative services only (ASO) models. Bright Health says that ICHRAs and ASO models can help focus on the individual while creating more flexible network options. This should help manage costs while also increasing the quality of care.

Government and Innovation: As costs continue to increase, both the federal and state governments have tried to introduce new plans to manage risk. The Centers for Medicare & Medicaid Services announced a Direct Contracting model to begin in 2021. This will create value-based payment arrangements. Bright Health expects the Medicare FFS market to be a $30 billion opportunity in 2021. The company also adds that states are using Managed Medicaid programs to drive better outcomes at lower costs.

But although it’s important to understand a company’s market, that’s not the only thing investors interested in Bright Health stock should look at.

The Financial Data

When a company files to go public, it must provide certain key information. And the financial data is a big one. The Bright Health IPO prospectus gives insight into the company’s financial history since 2018.

Bright Health lists three sources for revenue: premium, service and investment. In 2018, Bright Health’s total revenue was $130.6 million. It grew to $272.3 million in 2019 for a growth of 108%. And the trend continued into 2020 with total revenue of close to $1.18 billion. That’s a growth rate of 333%. Investors see this from 2020 to 2021 as well. Although Bright Health only reported on the first three months ended March 31, 2021, it’s compared to the same time period in 2020. The company notes it went from $190.7 million in total revenue for 2020 to $860.6 million in 2021.

But growing revenue isn’t the only thing Bright Health has. The company also has growing net loss. From 2018 to 2019, net loss went from $62.6 million to $125.3 million. It grew to $248.4 million in 2020. And for the three months ended March 31, net loss grew from $7.3 million to $21.5 million in 2020 and 2021, respectively.

On Bright Health’s balance sheet, the company shows cash and cash equivalents of $975.9 million. This number will likely increase after the Bright Health IPO. But the company also has $200 million in debt. In the prospectus under “Use of Proceeds,” Bright Health states…

We intend to use the net proceeds received by us from this offering to repay all outstanding borrowings under the Credit Agreement and the remainder for working capital and other general corporate purposes, including continued investments in the growth of our business. We may also use a portion of our net proceeds to acquire or invest in complementary businesses, products, services or technologies.

So, for those interested in Bright Health stock, here’s the information you need to know.

Bright Health IPO Details

Bright Health filed to go public on May 19, 2021. The company has a $100 million placeholder for deal size as the exact offering details are unknown. There is no confirmed Bright Health IPO date, price range or share number. Upon completion of the offering, Bright Health stock will trade on the NYSE under the ticker symbol BHG.

Are you looking for the latest investment opportunities? Then sign up for our free Liberty Through Wealth e-letter! It’s full of helpful tips and research from our investing experts. And if IPO investing interests you, check out our Top Recent IPOs and our IPO Calendar to stay up-to-date on the market’s latest offerings. As the health insurance market continues to gain attention post-pandemic, investors may want to keep an eye on the Bright Health IPO.

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Boom Supersonic: The Business

Blake School, Joe Wilding and Josh Krall co-founded Boom Technology, Inc. in 2014. Known as Boom Supersonic, the Denver-based startup is designing supersonic aircraft. Boom Supersonic’s first aircraft is the Boom Overture.

Overture airliners will be a 100% carbon neutral fleet. It has a planned range of up to 4,250 nautical miles. The craft measures a length of about 200 ft with a passenger capacity between 65 and 88 people. The company hopes to introduce the airliner by 2030.

With Boom Supersonic’s fleet, flight times will be cut in half. The company claims the Overture will be able to fly from Tokyo to Seattle in four hours and 30 minutes. That’s four hours faster than the typical flight time.

With this technology, the travel industry could change greatly. Business meetings can be done in person while also being able to go home that same day. If there’s a global crisis, help can be there in half the time. But this startup’s technology isn’t the only reason investors are starting to look into Boom Supersonic stock.

Why Boom Supersonic Stock: The Progress

There are two big reasons Boom Supersonic is getting attention. The first involves its latest funding round. And the second comes from a number of recent announcements.

Boom Supersonic Reaches Unicorn Status

If you’re unfamiliar with the term “unicorn,” it refers to a private company with a valuation of $1 billion or more. And if Boom Supersonic stock comes to market, that value will be reflected in the price. In December 2021, CEO Blake Scholl announced it was raising $50 million in a funding round. It was this funding that brought the startup’s value to unicorn status.

WRVI Capital’s Michael Marks led the investment. The round brought Boom Supersonic’s total funding to $210 million. In total it has raised around $250 million across seven rounds of funding. The most recent taking place in June 2021.

The funding will help the company in its goal to have a scaled-down prototype fly next year. Additionally, Boom Supersonic hopes to break ground for a full-scaled aircraft factory in 2022. If everything goes as planned, its first commercial plane could be flying by 2026.

In June 2021 Boom Supersonic announced its first partnership with a major airline, United. In this deal, United will purchase 15 of the Overture airliners, with the option to buy 35 more. These planes will start carrying their first passengers in 2029.

And Boom Supersonic just recently signed another deal with a major airline. This time it’s with American Airlines. Under this deal American Airlines can purchase up to 20 supersonic jets, with the option to purchase an additional 20.

Boom Supersonic plans to take an approach similar to Tesla when it first started manufacturing vehicles. Fares for Boom Supersonic’s flights will start at a business-class level before the company can lower it to economy-class prices. But the bottom line is Boom Supersonic hopes to make supersonic airflight available and affordable to all by the end of the decade.

2021 Board Additions

Another reason for Boom Supersonic stock rumors is the company’s growing executive suite and advisors. It includes some impressive names.

New Executives

Joe Massaquoi (Chief Financial Officer; CFO): former CFO of Initium Aerospace, a Boeing and Safran venture to develop aircraft auxiliary power units and previous Boeing executive.

Kathy Savitt (Chief Commercial Officer; CCO): a Boom Supersonic advisor who founded Perch Partners, a consulting firm specializing in emerging technology, airlines, healthcare and more. She also served as a board member for Alaskan Airlines and former C-suite executive for Fortune 500 companies.

Barb Bidan (Chief People Officer): previously held senior HR roles with leading tech companies such as Yahoo, Peloton and Blackberry with experience in rapidly growing companies.

New Advisors

Phil Condit: former chairman and CEO of Boeing where he more than doubled revenue during his service and led a number of commercial programs, including the 747 and 757. He commented…

The potential of faster flight is an exciting next step in civil aviation. I was drawn to Boom by the significant progress the team has already made in developing a sustainable supersonic airliner. Boom’s team has the technical depth and know-how to deliver on its vision, and I’m excited to have another opportunity to help make aviation history.

Tim Brown: executive chair of global design firm IDEO and advocator for human-centered approach to innovation. Brown will work to develop the ideal flying experience for passengers and crew. He added…

Boom has an inspiring vision of global connectivity, and I am inspired by the company’s commitment to sustainable speed. Overture is an opportunity to create a truly human-centered travel experience. While the first-order benefits of faster travel are clear, I’m fascinated by what second-order benefits supersonic commercial airplanes will offer.

With these moves, it’s not surprising investors are wondering if Boom Supersonic stock is the next step. But will this startup go public?

Will Boom Supersonic Go Public?

Travel stocks are growing. In fact, Sun Country Airlines was one of the top recent IPOs for March. However, that trend stems heavily from the travel restrictions placed during 2020. For Boom Supersonic to play that growth, the company would need to IPO relatively soon.

And that’s more than likely not the case. Although nothing is for certain, Boom Supersonic doesn’t have a working prototype yet. And its first flights are still a few years away.

It’s possible the company could decide to offer Boom Supersonic stock in an attempt to raise funds for its project. However, the company has $6 billion in pre-orders and increasing investor support. As well as a promising partnership with United. That means it’s unlikely Boom Supersonic will need to rely on retail investors for funding in the near future.

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If Blue Origin goes public, investors need to be ready. So here’s everything you need to know…

Blue Origin IPO: What Is It?

Blue Origin is a commercial space company. Jeff Bezos, the founder of Amazon (Nasdaq: AMZN), founded Blue Origin in 2000. The company manufactures aerospace crafts and provides sub-orbital spaceflight services. It’s headquartered in Kent, Washington. Blue Origin has 3,500 employees.

Bezos’ goal is to enable people to live and work in space in order to preserve Earth. The company aims to expand, explore, and find new energies and resources to move industries into space. Blue Origin is developing partially and fully reusable launch vehicles.

The company recently started taking bids for its first commercial seat with its first astronaut crew. And that’s why investors are looking for a Blue Origin IPO. Let’s look at some key information about the company’s progress.

Blue Origin Stock: The Company’s Progress

Every year, Bezos spends $1 billion on Blue Origin. And he plans to continue spending at that pace. He funds this mostly by selling shares of Amazon stock. And since he’s the world’s richest man, his personal funding likely won’t stop any time soon. Here’s what Blue Origin is up to…

Artemis Human Landing System

Blue Origin is in contract with NASA for its Human Landing System (HLS) Artemis program. NASA announced on April 30, 2020, that Blue Origins, Dynetics and SpaceX were all chosen to lead teams for a 10-month study. It had a combined value of $967 million.

The biggest award went to Blue Origin, which got $579 million. Its team includes Draper, Lockheed Martin (NYSE: LMT) and Northrop Grumman (NYSE: NOC). Together, the companies are working to return man to the moon by 2024.

Blue Origin CEO Bob Smith commented…

NASA’s Artemis program will be the next major milestone in the history of human space flight, and we’re honored to be a part of it. Our National Team brings unparalleled heritage, passion and innovation that will enable Americans to return to the lunar surface and inspire another generation. It’s time to go back to the Moon, this time to stay.

On August 20, 2020, Blue Origin announced that it had delivered an engineering mockup of a crew lander vehicle. It would be capable of taking American astronauts to the moon. In September, it completed its system requirements review for the HLS. And Blue Origin submitted its moon proposal in December. It would land the first woman and next man on the moon.

New Glenn: NASA Selects Blue Origin for Services Catalog

At the end of 2020, Blue Origin was picked by NASA to be part of its services catalog. This fueled Blue Origin stock rumors. The contract awarded is for launching planetary, exploration, scientific and Earth-observation satellites for the agency aboard New Glenn. It also lets the company compete for missions through Launch Service Task Orders issued by NASA.

New Glenn is named after astronaut John Glenn. The vehicle is capable of transporting people and cargo. It has a reusable first-stage build for 25 missions. Blue Origin claims this makes it competitive for a number of launch markets.

Additionally, New Glenn has twice as much room for payloads as other existing launch vehicles. It can launch more than 13 metric tons. For low Earth orbit, that goes up to 45 metric tons. It’s also able to launch and land in 95% of weather conditions, according to the Blue Origin website.

New Shephard: Bid for First Seat Begins

In a big milestone for Blue Origin – and a good sign for a Blue Origin IPO – the company recently opened bidding for a seat with its first astronaut crew. The flight will take place on July 20, 2021.

There are three phases of the auction. From May 5-19, sealed bidding is available online. Sealed bidding means no bids are visible. Starting May 19, the process will move to unsealed bidding. During this part, bids are visible. Only the highest bidders will move to the live auction on June 12.

The money from the winning bid will be donated to Blue Origin’s foundation, Club for the Future. The Club aims to inspire future generations to pursue STEM careers and be part of the space frontier.

The crew will fly on Blue Origins’ New Shepard. The vehicle is named after Alan Shepard, an American astronaut. In 1961, he became the second man and first American to go to space. Ten years later, he walked on the moon.

New Shepard is a reusable suborbital rocket system. It was designed to take astronauts and research payloads into space. The flight is 11 minutes long. It can take up to six astronauts and is fully autonomous, with no need for pilots. New Shepard has been in testing in 2012 to ensure safety.

It’s a big step toward Blue Origin stock. But can the company compete with its biggest rival?

Blue Origin vs. SpaceX

Space stocks are becoming increasingly popular as the race to space continues. So it’s no surprise investors are looking for a Blue Origin IPO. Former President Trump initiated the Artemis program to return astronauts to the moon. He also started the path to Space Force, a sixth branch of the armed services.

Analysts weren’t sure if these programs would stick with the new administration under President Biden. But it appears Trump’s space programs were two things Biden could get behind. The White House announced it will continue to support these efforts. And the global space industry is estimated to be worth $1 trillion by 2040.

Blue Origin is lagging behind its rival. SpaceX already completed a successful launch, taking astronauts to the International Space Station (ISS) in 2020. And it’s also been using its reusable rockets to carry payloads to the ISS.

Bezos’ company is working with Amazon to develop Project Kuiper, a constellation of satellites to bring the internet to remote locations around the world. Sound familiar? That’s because SpaceX is well underway to accomplishing this with its subsidiary, Starlink. In fact, investors could get a Starlink IPO before a Blue Origin IPO, as the project has already launched more than 1,300 satellites and is taking orders and pre-orders for its service.

It’s hard for investors to not compare the two companies. They have many of the same goals – but different approaches. However, Blue Origin’s slow and steady approach could keep it behind its competitors, which also include Boeing (NYSE: BA) and Virgin Galactic (NYSE: SPCE).

So will investors see Blue Origin stock any time soon?

When to Expect a Blue Origin IPO

Bezos hasn’t announced any plans to take Blue Origin public. Elon Musk, on the other hand, tweeted that a Starlink IPO will come in the future. But Musk doesn’t plan to take SpaceX public. So it wouldn’t surprise investors if Bezos didn’t offer Blue Origin stock to the public.

However, analysts are hoping that with the successful launch of an astronaut crew, Blue Origin will be better positioned to announce a Blue Origin IPO in the next couple years. That means the idea of Blue Origin stock is still possible. But until we hear it from Bezos himself, Blue Origin stock rumors are just that – rumors.

Are you looking for the latest investment opportunities? Sign up for our free Profit Trends e-letter! It’s full of useful tips and research from our investing experts. And if IPO investing interests you, check out our Top Recent IPOs and IPO Calendar to stay up to date on the latest offerings of today. And make sure to come back for more updates on Blue Origin stock.

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