The software company Uber announced that it plans to start new funding round in which it will raise up to $2 billion. If this happens, Uber will turn into the company with the highest value in the world, backed by venture capital – $50 billion, in the moment it takes the second place in the world. Uber’s evaluation is $41 billion and over it stands only the Chinese electronic behemoth Xiaomi, according to Dow Jones it worths $46 billion.
If the round goes how planned, it will be the fourth financial round that crosses the billion-dollar limit for Uber. The company’s prime product is mobile application that connects passengers with contract drivers and eliminates the need of taxis. For the past year this product have spawned a lot of discussions in some of the 53 countries where Uber operates. Despite this their shares keep on raising.
A round of that size will stay just under the record that the company put on its previous E Series funding round in February – $2.8 billion. Before it in San Francisco there was Series D funding that gave the company $1.2 billion. Uber has put an unprecedented record with such monstrous-size investment rounds in the tech venture financing . We shouldn’t forget the mind-blowing pace of these rounds – twice a year at least! This is real record on the private market that wouldn’t be possible on the public one.
These money don’t come from traditional venture companies anymore. Among the investors of Uber you can spot pension, mutual and hedge funds; foreign governments and private equity firms.
In 2014 Uber had almost $400 revenue, after the account for the drivers’ payment. If the investment round reaches the desired proportions, Uber will worth its trailing value 120. According to the market specialists this is an evidence for a trend of hyper-speed ever-growing funding rounds. Uber has turned into leader of the so called quasi-public companies, i.e. new breed of companies that have grown than the private market but they remain on it for the bigger opportunities for funding and the stratospheric size of the funding rounds.