- Index Ventures had seven portfolio corporations value over $1 billion go public this 12 months.
- Essentially the most useful are Roblox and Robinhood, which went public at $42 billion and $29.3 billion.
- Index’s Roblox stake was value $3.42 billion, sufficient to return its Development III fund nearly 5x.
Final spring, some 25 years after Neil Rimer launched Index Ventures along with his father, Gerald, his agency collected on the largest exit in its historical past: a $3.42 billion stake in Roblox.
The return on its funding was a venture-capital holy grail, sufficient to pay again its Development III fund — which closed at $706 million — nearly 5 occasions, in response to our evaluation.
The exit is one in every of a number of up to now this 12 months that has solid Index into the limelight, as rival companies increase huge funds from their restricted companions to put money into startups. Index’s document of selecting winners led it to boost $3.1 billion this 12 months for brand new funds.
To date in 2021, seven corporations backed by Index went public at a market cap above $1 billion, in response to PitchBook information supplied solely to Insider. Essentially the most useful corporations embody Roblox, Robinhood, and Confluent.
The agency’s historic run of exits is spectacular, however much more so are the returns it is garnered this 12 months.
Roblox is the agency’s most precious public exit. Index had 10.8% possession of the gaming firm earlier than it went public in March, in response to a regulatory submitting. That stake turned value $3.42 billion on the inventory’s market debut, and now Roblox is buying and selling about 30% above its preliminary asking value.
Rimer led the agency’s funding in Roblox in a $92 million spherical in 2017. (He would later kick himself for not investing sooner, having identified Roblox cofounder David Baszucki since their days at Stanford.) In a weblog submit, Rimer described the corporate as a “Twenty first-century Disney” that might redefine leisure and “human interplay.”
Jan Hammer, a normal associate at Index, helped the agency get in early on one other of its portfolio corporations that went public this 12 months. He wrote a $500,000 examine to Robinhood eight years in the past, and urged his companions to follow-on in subsequent rounds. The agency turned the most important institutional investor in Robinhood earlier than its public market debut. The agency’s 11.8% stake was value greater than $3.2 billion on the inventory’s opening value of $38.
Hammer additionally led the agency’s funding in Ayden, a Dutch funds firm that went public in 2018.
Since its founding, Index has made greater than 1,000 investments in 650 corporations. Of these, about 60 have gone public, whereas a minimum of one other 167 have merged or been acquired, in response to PitchBook information.
To this point, probably the most extremely valued portfolio corporations are Fb and
, which immediately are value round $1 trillion and $27 billion, respectively. Index had lower than 5% possession in every earlier than they went public, regulatory filings present.
Index’s streak will proceed if Plaid goes public this 12 months. The fintech was speculated to promote to Visa, however the corporations referred to as off the deal in January after regulators refused to approve the acquisition and as an alternative sued to cease it.
Traders like Index weren’t too dissatisfied. They informed Insider that Plaid was value greater than the $5.3 billion value it had within the acquisition, because the pandemic accelerated adoption of its instruments and different fintech companies.
They have been proper. The startup raised new funding months later at a valuation of $13.4 billion.
“The timing is much less essential than the scale of the outcomes,” Mark Goldberg, a associate at Index, informed us in January. “Our view is that whereas we had a chook in hand with Visa, a bit of persistence will actually repay in the long term.”
The agency’s different unicorn corporations embody Figma, Discord, Scale AI, and ServiceTitan.