Can this “quiet company” open the IPO window? – TechCrunch

Earlier this monthThe stock market I looked at the quieter companies which are constantly growing before, during and after the peak of venture capital in 2021. Startups and unicorns that did not increase by 50x or 100x ARR last year may be the companies most willing to open an IPO window in some moment in the future.

Many of you have been enthusiastic about the coverage of less blatant private technology companies, so this morning we will take another look at this startup group.

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To continue our conversation, I spoke with Derek TingCEO of Text now, which has exceeded $ 100 million in annual revenue – not just in terms of profitability – and has a very interesting history of venture capital. We will also pass how to open an IPO window when the market stops falling by full percentage points every day.

Looking back at the clock, you may remember that this column once had regular series of publications examining private companies that have reached the $ 100 million ARR threshold. We got bored of the topic after a few cycles, as it turned out that most of the former startups, which reached nine figures in revenue, looked and sounded a lot like each other.

At the time, we meant this as a 99% compliment and 1% against. Today, this feels more like full recognition. Let’s talk about it.

What is TextNow and how does it work?

TextNow is a consumer telephone and text service that offers a zero-cost service with advertising and various levels that do not include advertising. TechCrunch first covered the company in 2011when it raised about $ 1 million. The company has already raised about $ 1.5 million in total – this is not a typo; we didn’t want to write billion.

The stock market last mentioned TextNow last year when it reached an annual turnover of $ 100 million. According to the company, it ended 2020 with $ 62 million in total revenue and $ 103 million in 2021. This puts TextNow well above the $ 100 million mark today, and since she hired a CFO, she is an IPO candidate as soon as the market welcomes such deals again. .

How could TextNow not raise several hundred million dollars?

We wanted to learn how TextNow has done what seems almost impossible for most risk-supported companies – to grow to the size of the public market without having to raise and spend tectonic money. According to Ting, the answer is somewhat pedestrian. He said TextNow was focusing on the pre-scale unit economy, adding that the more the company grows, the less external capital it needs.

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