News 

Report: Airbnb doubled Q1 losses YoY to $306M, with revenue growing 31% YoY to $839M, as the company prepares for its planned IPO in 2020

“Last month, The Wall Street Journal reported Airbnb saw strong growth in total booking value during the first quarter, which could help it lure additional investors” writes Annie Palmer for cnbc.com. However, should Airbnb go through with its plans to go public next year, it’ll likely face skepticism from investors who have grown wary of cash-burning companies like Lyft and Uber. Source: cnbc.com

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Crypto Markets News 

A New Trend in Crypto Funding Campaigns: Companies Resorting to IEOs

“While more crypto exchanges announce their support of IEO projects, a new crowdfunding trend is emerging on the crypto market: a shift to multiple IEOs” writes Evan Luthra for cointelegraph.com. The second quarter of 2019 demonstrated a growing popularity of the initial exchange offering (IEO), which has replaced the outdated initial coin offering (ICO) model.Crypto market stats show that over 65 IEOs have been launched in the past six months, with about 40 of them having reached their soft cap or even hard cap successfully.STEO is just an extended version of…

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Markets News 

Private market gives WeWork shares the cold shoulder

“There’s just a greater level of scrutiny overall in terms of transactions in the private market,” Leung said” writes Midwest Communications Inc for 95kqds.com. Outside of company sanctioned share sales, WeWork shares are not directly tradable because of the terms under which they were issued.WeWork declined to comment on the trading activity of its shares in the private market.That synthetic WeWork stock would currently fetch $20 or less per share, according to one investor who is active in the private market.Without an IPO, investors and employees looking to cash out…

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News 

Chinese education company Youdao to offer 5.6 million ADSs in IPO, priced at $15 to $18 each

“Chinese education company Youdao Inc” writes Ciara Linnane for marketwatch.com. “We’re the leading intelligent learning company in China with over 100.0 million average total MAUs* (monthly average users) in the first half of 2019.”. “For over a decade, Youdao has developed and used technologies to provide learning content, applications and solutions to users of all ages,” the company says in its IPO documents.The company has applied to list on the New York Stock Exchange under the ticker symbol “DAO.” Citigroup, Morgan Stanley, Credit Suisse, CICC and HSBC are underwriters on…

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News 

JPMorgan has a complex relationship with WeWork. Here’s a sneak peak at what Wall Street analysts will be asking when it reports earnings.

“Those analysts did estimate a $264 million WeWork writedown in Goldman’s investing and lending business, which houses the firm’s own bets, saying Goldman typically takes “event-driven” write-ups or write-downs” writes Shannen Balogh for businessinsider.com. Earnings season for big banks kicks off next week, and JPMorgan is due to report on Tuesday.Both banks have lent to WeWork CEO Adam Neuman Analysts will have their eyes on any potential credit-related issues tied to lending to WeWork and Neumann. Source: businessinsider.com

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News 

The flopping of the IPOs: Tech’s biggest investors came to San Francisco for a major startup conference, and one topic stole the show

“The Disrupt conference in San Francisco, organized by Tech Crunch, is a longstanding showcase for cutting-edge startups and products” writes Megan Hernbroth for businessinsider.com. In all, direct listings were discussed in at least three major panels throughout the first two days of the Disrupt conference.For the entrepreneurs and techies who convened at the Disrupt conference, the fixation on the direct listing underscored the eternal optimism that runs through Silicon Valley.For many of the VC investors on hand, the remedy was simple: a direct listing, that sidesteps the traditional, banker-controlled IPO…

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News 

WeWork plans to cut 2k jobs after failed IPO

“In the presentation, made available to all 12,500 or so WeWork employees, Minson apologized for the recent weeks of uncertainty” writes Ellen Huet for oregonlive.com. WeWork employees are accustomed to routine firings, unlike at the typical startup in growth mode.And making a show of cost-cutting may not be the formula to sell a new stock to public investors, who are looking for a growth story.For now, WeWork just needs to convince private investors, SoftBank in particular. Source: oregonlive.com

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News Stocks 

SmileDirectClub stock falls then recovers after scathing report from short seller

“The company then develops and ships the clear aligners back and the customer undergoes a five to 10-month treatment plan” writes Ciara Linnane for marketwatch.com. In its IPO filing, the company disclosed sales of $432.2 million in 2019, up 190% from the year earlier.SmileDirectClub shares slid 4.5% Friday before recouping those losses, after a short seller slammed the company for illegal practices and said the teeth-straightening startup cuts corners in ways that put customers at risk. Source: marketwatch.com

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News 

WeWork is planning to lay off up to 25% of its employees

“On Monday, the new CEOs said they would shelve its IPO, though they said in a statement that being a public company is still the goal” writes Becky Peterson for businessinsider.com. We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future.”. WeWork has about 12,500 employees, so a cut of 1,000 to 3,000 people would be about 10%-25% of its staff.WeWork is planning massive layoffs that will number in the thousands as new leaders of the embattled…

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News Stocks 

Aprea Therapeutics’ stock opens 3.1% above IPO price, then rises further

“APRE, +10.67% got off to a positive start as a public company Thursday, as the first trade of the cancer treatment developer’s stock was 3.1% above its $15 initial public offering price” writes Reporter Editor for marketwatch.com. The biopharmaceutical company sold 5 million shares in the IPO to raise $75 million, and was valued at $288.15 million.The IPO priced late Wednesday in the middle of the expected range of $14 to $16. Source: marketwatch.com

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