Uber's New (Huge) War Chest
Recently, a colleague of ours here at Inc. pointed to Flywheel's latest round of funding--$14.8 million from Shasta Ventures, Cranton, and RockPort--as being potentially indicative of a bubble in the car-hailing space.
It is getting crowded out there. Dozens of companies are doing everything from donation-fueled rid-sharing to renting a stranger's car at the airport. Just look at four of the top players' funding from venture capital firms:
Sidecar: $10 million
Flywheel (formerly Cabulous): $22.8 million
Hailo: $50.6 million
Lyft: $82.5 million
Total: $165.9 million
Then there's Uber.
It's been rumored for weeks, and Friday confirmed that the fast-growing technology company that lets people hail cabs, cars, and sedans with their smartphones, raised more money than all these companies have, put together. It already had $57.1 million in VC funding, and Friday's raise seems like it could bring that number to an astronomical $400 million. The exact price of the stock Uber sold remains unclear. Uber CEO Travis Kalanick originally leaked a fundraising round late last July, but Uber's PR machinery tried to play it down, even tamping down the number, said All Things D's Kara Swisher, who broke news of the fundraising yesterday.
The Delaware filing, submitted August 1, shows TPG bought 775,092 shares of Series C-2 preferred shares at $114.03, while Google Ventures walked with about 105,234 shares of Series C-1 preferred shares at $142.54. Here's how the math works out, per Vator.tv, a news site for the tech industry:
Uber sold 1,913,782 shares of C-1 stock, worth $142.54 each. The company also sold 775,092 shares of C-2 stock, worth $114.032 each. That means that the C-1 stock was worth $272,790,486.28, while the C-2 shares were worth $88,385,290.944.
Add those together and you get 2,688,874 shares sold for a total of $361.2 million.
With such lofty numbers, it's no surprise that TPG got involved. In fact, rumor has it that Google CEO Larry Page stepped in to make sure the deal went through. As it stands now, Uber is valued at $3.5 billion, which isn't bad for a company encountering regulatory roadblocks wherever it goes. Uber has seen its share of complaints from public utilities commissions, city councils, and from taxi and limousine commissions.
Inc.'s feature on Uber in June looked at how just this one company is laying its hands on the staid old urban ground transportation industry, which is worth $11 billion every year in the United States alone. According to All Things D, the start-up is expected to bring in about $125 of total revenue this year.
Read the Delaware filing below.