Last week I asked if you were going to invest in Coupa…. Well… Did you? I bet you wish you did.
Perhaps you did. Perhaps you are reading this dispatch from a beach in Cancun with a Margarita in your hand and a full bank account. If so, hats off to you. Sadly, I did not invest in Coupa and hence I am here at my desk writing this blog sans Margarita.
The dizzying highs.
Coupa has soared, at one point on its opening day of trading the e-procurement providers’ stock price had doubled!! Coupa closed its first day trading up 85%. The company’s CEO Rob Bernshteyn (pictured below at a point when company’s share price was up 106.5%) kept a deadpan stare during his press obligations, but with a hefty share of the Coupa pie, you can bet he’s bubbling on the inside.
Exciting isn’t it? The words procurement, unicorn and silicon valley being mentioned in the same sentence. And the money… all that money!! Which forces me to ask the question; has procurement software become sexy? Maybe not. Has it made a lot of people rich? You bet it has.
It’s all very impressive for a business that is yet to turn a profit and may not for some time. But as Mr Bernshteyn mentioned in the interview above;
“For every dollar we burned, we created well over a dollar in recurring revenue,” he said, adding that he’ll be looking to “build this business for the long term.”
2016 has been one of the slowest years on the IPO front in recent memory. A great deal of that has been due to the fact that we’ve seen an increase in activity in the M&A space. But with Coupa’s hugely successful IPO there is now some buzz coming from ‘the valley’ that perhaps this is the vote of confidence will bolster what has been a trickle of IPO’s into a more substantial stream.