GitLab Mega IPO – TechCrunch
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Hello friends! Have a nice week end. At the top, there is one more fairness episode falling today in the biggest China-Microsoft dust-off on LinkedIn. So if you need more on that, it happens. Let’s go!
The key story for Startup Land this week was the simply massive GitLab IPO.
In case you’re late, GitLab has filed for an IPO, and we’ve noted that at current market prices, the DevOps giant could be worth some $ 10 billion. It ended up being conservative. GitLab ended up increasing its IPO price range well above its initial estimate and then to $ 77. Late Friday afternoon, as of this writing, it is worth over $ 108 per share.
I contacted GitLab CEO Sid Sijbrandij to discuss the deal. I chatted with Sijbrandij here and there for a while, starting with this particular story. So it was a lot of fun talking to him on IPO day, constrained as he was by normal SEC rules. Here is what I learned:
- Why has GitLab gone public now? It hit all of the targets, Sijbrandij said, including revenue scale, revenue predictability, and compliance. And the IPO date was 10 years before the month co-founder Dmitriy Zaporozhets wrote his first code for the company. So it’s a good synchronization circle. Humans love round numbers so much.
- Have GitLab’s strong net retention metrics contributed to revenue predictability? Yes, but Sijbrandij did not want to say so explicitly.
- Open source is now an advantage, not a barrier: This point echoes something we noted about startups the other month, but it’s still worth pointing out. Having open source code is now a windfall to companies hoping to build long-term relationships with developers, which is often essential when it comes to product-driven growth, I’d risk it. It’s the opposite of the world that existed a decade ago, and maybe that’s why Microsoft has changed its tone with the concept of open code.
- And will we see GitLab come into MLOps as well as DevOps? May be? Sijbrandij wasn’t black and white on the matter, but with the acceleration of the MLOps world, I wouldn’t be shocked if we saw GitLab wandering around in what you might call startup territory in time. He certainly now has the money to do whatever he wants.
Cloudflare against the world
Let’s go back to the late September news that Cloudflare was heading into the ‘storage as a service’ market. The news was that Cloudflare intended to offer cloud storage through its collection of global data centers. Product timeliness was a far cry from what Cloudflare is best known for, which is to make websites appear faster and more securely.
Why did the now public company embark on something so commodified as storage room? At the time, Ron Miller wrote that Cloudflare was transforming something he built for himself and giving it to others. And by eliminating some fees, Cloudflare’s storage service – R2 – would be cheaper than what Amazon offers, for example, through its AWS collection of infra services.
I had a thought. Namely, I won’t be completely stunned if we see big, but not titanic, tech companies with a global footprint that offer a special flavor of digital service. too start providing this appear to be initially a niche infra-tool which competes modestly – initially – with what Amazon and Microsoft currently offer via AWS and Azure.
It might be Big Dumb, but we can explain ourselves a bit by analogy. My argument is akin to how Intel has ruled the world with its particular CPU methodology for a long time, to lose the future not only to GPUs forced into cryptocurrency salt mines, but also to the grip of startups. building, for example, AI-powered silicon. . In our analogy, AWS is Intel and AI chips are things like R2 from Cloudflare.
Gone are the days when AWS and Azure traded price drops. And after?
- A Midwestern VC mix has invested $ 3.5 million in Presidio, a digital safe-deposit box startup for consumers. It’s a Florida-based company and is planning a launch in 2022. I have a myriad of questions on this. But this person who was building a storage-centric startup around that time and that time caught my eye.
- Tabletop software company Cap Carta released a data product that I liked to tinker with. If you want to have fun with tons of fundraising data sortable by era and type of business, that’s great fun.
- I was going to write notes on this essay by a UK startup on how they re-domiciled in the EU after their home country started changing privacy rules, but our own Natasha Lomas got ahead of me. . So read his post, which is better than I could have found.
- And, speaking of the UK, Freetrade in the country has now registered 1 million users. This statistic is important because it indicates that the Robinhood boom is truly an international consumer movement that will lift the boats of many startups.