Our Guernsey-licensed investment adviser, a joint venture with Manhattan Venture Partners, a US merchant bank focussed exclusively on institutional quality direct secondary transactions in venture-backed private tech companies, will shortly be launching Europe’s first non-private fund investing in globally renowned privately-held tech disrupters such as Airbnb at the scale up and pre-IPO stage. First close is expected to be in June.Read Article
Spotify is the latest unicorn to go public. The music streaming service opted for a direct listing, shunning the route of the traditional IPO. Is this going to be a trend? In this episode of Yahoo Finance Presents, Alexis Christoforous speaks with Santosh Rao of Manhattan Venture Partners.Read Article
In 2017, Spotify earned about $5bn in revenue through its 71 million paying subscribers, but high costs, which last year included a staggering $1.5bn in music royalties, have kept the company in the red. However, share sales in the private market ahead of the 3 April Nasdaq launch were telling. New York financial services group Manhattan Venture Partners reported that Spotify shares had been changing hands for up to $150 each in the two weeks prior to launch.Read Article
Prior to listing, Santosh Rao, the head of research at Manhattan Venture Partners — which has invested in the company in the secondary market — expected Spotify’s strategy to pay off and be an example for others to follow. “If this is a successful listing, I can see Airbnb doing it, Uber doing it,” he told Bloomberg. “But Uber and Airbnb are much bigger scale.”Read Article
Afterward, the day went without a glitch, with Spotify achieving a trading volume of 30 million. “It was a safe landing,” said Santosh Rao, the head of research at Manhattan Venture Partners. “People thought this was going to be chaotic, but it was smooth.”Read Article
Afterward, the day went without a glitch, with Spotify achieving a trading volume of 30 million. “It was a safe landing,” said Santosh Rao, the head of research at Manhattan Venture Partners. “People thought this was going to be chaotic, but it was smooth.”Read Article
On Tuesday, Spotify is going public in a highly unusual debut that sees it ditch the usual fundraising and fanfare. But the company is looking to lure investors in part by comparing itself to a company with which Wall Street is very familiar. “The comparison is good. It shows that even Netflix was underestimated and then they became this giant,” says Santosh Rao, who tracks Spotify as head of research at Manhattan Venture Partners. “It shows that there is power in numbers.”Read Article
Santosh Rao, head of research at Manhattan Venture Research, said the direct listing prevents any forced buying or selling and does not include a lock-up period. Going public also won’t change much about the company’s reporting, which has been quite transparent, according to Rao. “This is the way the company has been positioned all along,” Rao said. “Being a European company, they are required to disclose financials every year anyway.”Read Article
According to Manhattan Venture Partners (MVP), a New York bank, Spotify shares had been trading on a grey market for up to $150 in the last fortnight – giving it an unofficial $26.5bn valuation. Grey market trading occurs outside of authorized channels and usually happens before an initial public offering.Read Article
Manhattan Venture Partners (MVP), a New York bank that specializes in “grey market” trading for large private companies, said Spotify shares had been trading hands for as much as $150 in the last two weeks, a price that values the company at around $26.5bn.Read Article
“Now, you don’t need to go to Dropbox to do all the functions that they have,” says Santosh Rao, who tracks Dropbox as head of research at Manhattan Venture Partners. “You can live without Dropbox.” That doesn’t mean Dropbox is doomed, but Rao says the company’s opportunity may be closer to Twitter () than Facebook ( ). “It doesn’t have the mass appeal of a Facebook, but I think in a niche market, it has its presence,” he says.Read Article
The odds are in favor of Spotify’s listing succeeding, said Santosh Rao, the head of research at Manhattan Venture Partners, which has acquired shares of the company sold in the private secondary market. “If this is a successful listing, I can see Airbnb doing it, Uber doing it,” Rao said. “But Uber and Airbnb are much bigger scale.”
The odds are in favor of Spotify’s listing succeeding, said Santosh Rao, the head of research at Manhattan Venture Partners, which has acquired shares of the company in the secondary market. “If this is a successful listing, I can see Airbnb doing it, Uber doing it,” Rao said. “But Uber and Airbnb are much bigger scale.”Read Article
“That’s kind of become standard now with these tech companies,” said Santosh Rao, head of research at Manhattan Venture Partners. “They want to control the direction of the company. On a strategic sense it makes sense. But in the case of Snap, it was just too much, they had 90% of the voting rights.”Read Article
Today, estimates of Spotify’s market valuation are $19 billion, up from $16 billion in September. “It’s the golden boy, the ‘Star Wars’ of the music industry,” says Santosh Rao, head of research at Manhattan Venture Partners, who has been covering Spotify for several years.Read Article
Dropbox’s exposure to the enterprise market could give it an edge when it comes to discussions about its cloud rivals, which include big players such as Microsoft Inc. (MSFT – Get Report) , Alphabet Inc. (GOOGL – Get Report) , Apple Inc. (AAPL – Get Report) , Amazon.com Inc. (AMZN– Get Report) and Box Inc. (BOX – Get Report) , among others. Enterprise customers tend to be “stickier” because contracts last for about two to three years, while consumers can easily switch between cloud providers, said Santosh Rao, head of research at investment bank Manhattan Venture Partners.Read Article
There was much hype surrounding the technology and social media company Snap Inc., which debuted in March for investors who could see beyond Snap’s comedy filters that make us laugh.
“It can have e-commerce in there. It can have payments in there. Down the road, maybe you can get some gaming in there. So they have two or three levers that they can pull to keep the user base engaged and monetize them,” Santosh Rao of Manhattan Venture Partners said.Read Article
Streaming music has arrived in a major way. It’s become the preferred medium of music consumption and a key growth engine for music industry sales, accounting for 62% of the U.S. music business. There’s an ongoing battle for dominance between Spotify, Apple, Google and Amazon for a slice of the music business that is expected to remain on a strong growth trajectory.
To help put things into perspective, I recently spoke with Santosh Rao, Head of Research at Manhattan Venture Partners, about some of the major moves happening in the space, the opportunities for marketers and why Spotify could reign supreme.Read Article
“Uber will do anything to keep the PR image, they don’t want any negativity,” said Santosh Rao, analyst at Manhattan Venture Partners. “So they will give in more now. This is the right time to demand concessions from Uber because they need to get it right, they cannot lose Uber UK.”Read Article
Uber’s whole value proposition is that it’s cheaper, quicker and easier. But this week the ride-sharing service was accused of being not so easy for people who are disabled. The group Disability Rights Advocates, filed a class-action lawsuit against Uber. The suit argues the company discriminates against New York City riders with disabilities because it doesn’t offer enough wheel-chair accessible vehicles.Read Article
The upheaval at Uber will leave the next chief executive facing an even bigger challenge in how to solve one of the main conundrums about the company: how does the business of booking a car actually make money. Santosh Rao, head of research at Manhattan Venture Partners comments that “subscription models are always very beneficial. There is visibility, it is a nice recurring revenue model. To the extent that they can get it, that is great.”Read Article
Waymo LLC’s partnership with Lyft Inc. on self-driving cars is moving it one step closer to commercialization. Santosh Rao, head of research at Manhattan Venture Partners, said he believes Lyft sensed an opportunity to gain more control over self-driving technology following its partnership with GM. And it was a competitive move against its rival.Read Article
On Thursday, the Wall Street Journal reported that Spotify — long rumored to be planning an IPO in the next year — might remix its plans. Instead, the report claimed the world’s largest streaming service would go public with a direct listing, rather than an Initial Public Offering, an option that is much more common for smaller companies that don’t expect a big publicity splash when entering the market, and one that is exceedingly rare for a company that, well, makes a big splash with just about every move it makes.Read Article
If Spotify’s interest in a direct listing is genuine, it would also demonstrate that the Swedish company isn’t in need of the kind of cash that is typically raised by issuing new shares and selling them via an IPO, said Santosh Rao, an analyst at Manhattan Venture Partners, a venture capital firm. “It does show that they might not need the money because they wouldn’t be issuing new shares,” Rao said in a phone interview. “But if you want real movement in the stock, if you want the stock to find its value, you have to go through the traditional bidding process.”Read Article
Snap Inc. has launched a new search function in its Snapchat app to help users more easily discover photo and video stories. This change moves Snap closer to becoming a major online video hub, and is likely to help the company increase advertising revenue and grow its user base.Read Article
When asked about his relationship with major media conglomerates, Netflix CEO Reed Hastings often says that competition is good for the industry. Yet while Spotify may want to reach profitability, it first has to reach a position of strength relative to its largest rivals, argues Santosh Rao, who heads up research at Manhattan Venture Partners, the venture capital firm. “Spotify could be profitable even now, even with this structure, but they are spending a lot on marketing and other services to try to expand their offerings,” Rao said in an interview.Read Article
MuleSoft (MULE) , the second tech unicorn to go public this year after Snap (SNAP) , had an extremely auspicious start on Friday, opening trading at $25.02 a share and closing at $23.75 per share, just about 40% higher than its initial offering price of $17. “The ‘IPO pop’ is in line with my expectations. Given the proliferation of applications within enterprises and MuleSoft’s offering that helps to connect them and work with them, we believe MuleSoft sits in the sweet spot of spending,” said Santosh Rao, head of research at Manhattan Venture Partners.Read Article
Indeed, under the leadership of Chesky, Adweek’s Digital Executive of the Year, Airbnb has grown at a rapid clip. Last year, the company became profitable for the first time and now has a total valuation of around $31 billion. Santosh Rao, a research analyst at Manhattan Venture Partners, credits Chesky as one of the “pioneers” bringing the sharing economy into the mainstream.Read Article
Snapchat’s slowing user growth in the face of growing competition from dominant social network Facebook (FB) and its Instagram mobile service. “Snap is a good company, but you need to take a lesson from Twitter (TWTR),” Santosh Rao, research analyst at New York’s Manhattan Venture Partners, told IBD.Read Article
Samsung’s partnership with India’s largest mobile wallet player Paytm is also likely to serve as a big push for the South Korean tech giant’s entrance into the Indian digital payment market. “The timing of the launch is very good given the ‘shock’ to the cash economy following demonetization. It is much easier to get people to download and use the Samsung Pay feature,” said Santosh Rao, head of research at Manhattan Venture Research. “India’s digital payments market is expected to reach $500 billion by 2020 on the back of 1.2 billion mobile subscribers, which makes it a compelling opportunity to tap into.”Read Article
Alibaba.com Singapore E-Commerce, one of Alibaba’s 40 significant subsidiaries and consolidated entities, gained another 36.3% stake in Paytm E-Commerce, adding to the 40% stake it already holds with Ant Financial Services Group, Alibaba’s finance arm. “It is a very logical and strategic investment and a deeper commitment in this space. Alibaba’s strategy is to expand its footprint and minimize its country risk. China is still its core market but it has slowed,” said Santosh Rao, head of research at Manhattan Venture Research.Read Article
Investors and analysts believe that Snap could not have chosen a better time to come to the market. The U.S. tech IPO market declined to its lowest level in a decade in 2016, registering only 16 public offerings for total proceeds of $1.8 billion, a far cry from the $8.4 billion recorded in 2015, according to PwC. “I think this is a great time for IPOs, there is a window that’s opened up, there’s animal spirits back in the market, there’s a risk-on environment right now,” said Santosh Rao, head of research at Manhattan Venture Research.Read Article
So should young investors take a gamble with Snapchat? It might be wise to wait and see how the stock does instead of buying it on the first day. Some investors think Snap’s valuation is too high. “The biggest problem you have with the old investment adage of ‘buy what you know’ is that the private markets have become much more efficient at valuing companies. [And] in cases like Snap, overvaluing companies,” said Jared Carmel, managing partner with Manhattan Venture Partners, a firm that focuses on private companies. Carmel added that “Millennials have proven to be fickle.”Read Article
Santosh Rao, head of research at Manhattan Venture Research, echoes that sentiment. “In terms of corporate governance, I don’t like it. It’s too much power in one hand,” Rao says. He also acknowledges that companies like Facebook and Google are shifting in this direction and argues that allows the firms to remain focused on their long-term strategy. “These company founders are trying to keep control. To some extent, I don’t have a problem with that. In the case of Facebook, [Mark] Zuckerberg kept all the control and made a lot of the decisions on his own; it helps them make acquisitions faster, to move faster without giving up too much control. It helps growth companies pivot to new things and acquire new companies. So in that sense, it’s good. They are still in the innovative phase in their companies, in the evolution. I have no problem with that as long as they deliver.”Read Article
Uber is valued at nearly $70 billion, and its IPO — if and when it ever comes — is being eagerly awaited by both Wall Street and Silicon Valley. Experts said the latest revelations are unlikely to derail Uber in the long term, thanks to its massive popularity and market share, despite occasional consumer backlashes.
“I think Uber will be fine in the end,” Santosh Rao, head of research at Manhattan Venture Partners, told MarketWatch’s Caitlin Huston.Read Article
More stories of sexism, harassment and debauchery at Uber Technologies Inc. emerged Wednesday, in a New York Times report detailing the company’s aggressive corporate atmosphere. “I think Uber will be fine in the end,” Santosh Rao, head of research at Manhattan Venture Partners, told MarketWatch’s Caitlin Huston.Read Article
Uber is facing another crisis, but experts say the impact on the ride-hailing service will be different than the recent campaign to delete the company’s app. Even as rivals offer similar services, Uber has first-mover advantage with consumers and is so ubiquitous that it is hard to hinder its growth, said Santosh Rao, head of research at Manhattan Venture Partners. “I think Uber will be fine in the end,” Rao said.Read Article
“I like this acquisition. I think it makes sense and it’s logical” for Airbnb, said Santosh Rao, a technology specialist and head of research at New York-based merchant bank Manhattan Venture Partners. “Airbnb is just getting into the luxury side. It’s just very nascent. So I think they’re just buying growth in that category.”Read Article
Santosh Rao, an analyst with Manhattan Venture Partners, told the Financial Times that Luxury Retreat has estimated annual bookings of $150 million, compared to Airbnb’s $3 billion in bookings. Rao added that the deal would be positive for both margins and revenue because of the higher margins in luxury accommodation.Read Article
Airbnb’s yearly bookings are around $3bn, while Luxury Retreat’s bookings are about $150m, according to estimates from Santosh Rao, an analyst at Manhattan Venture Partners. Airbnb has raised more than $3bn from investors who recently valued the company at $30bn; its backers include Peter Thiel’s Founders Fund, Greylock Partners, Andreessen Horowitz and Tiger Global.
Mr Rao expects that the deal will be accretive to Airbnb’s margins as well as to its revenue. “The margins for high-end [accommodation] always end up being higher,” he said. Based on his calculations, Airbnb broke even in 2016 based on earnings before interest, tax, depreciation and amortization.Read Article
Santosh Rao, Head of Research at Manhattan Venture Partners, believes that Tesla’s push into India makes strategic sense. “The market opportunity is too compelling to ignore,” said Rao. “India has a growing middle class with rising disposable income. The manufacturing cost will also be relatively lower.”Read Article
There is more to come in social media arena as the initial-public-offering filing by Snap Inc. has spurred plenty of attention, as one of the biggest technology IPOs in years and an offering that could worth the firm at almost $25 billion. Due to its social messaging app, Snapchat, and huge valuation, the firm (SNAP), has gained comparisons to the IPOs of Facebook and Twitter.
And in its road show, Snap declared that it was the next Facebook, not Twitter, as per reported by the Wall Street Journal, but following it disclosed huge net losses, investors and experts are not so confident. “It is alarming, as people got blazed with Twitter,” Santosh Rao stated, head of research at Manhattan Venture Partners.Read Article
The big IPO news last week was Snap Inc.’s initial filing for an IPO of some $3 billion at a market value of $18.3 billion according to a note from Manhattan Venture Research. The company said it estimates 2017 sales of around $1 billion and is hoping for a valuation nearer $25 billion. It’s early days yet on this one.Read Article
A report by Manhattan Venture Partners noted that Snap has a highly coveted user base but loyalty is a major concern. Snap’s users are predominantly in the highly coveted 18-34 age group, but current trends drawn from the S-1 prospectus suggest enthusiasm is currently waning.
“The company’s mobile native and visual format is appealing to a user base that is young and on the move, and tired of the filtered viral feeds of most online sites,” wrote Manhattan Ventures analyst Santosh Rao, in a research report on Snap. “The biggest challenge for Snap is to maintain its differentiated appeal, broaden the platform to other ‘sticky’ services and features, and keep refining its monetization engines. More important, it has to show a clear path to operating profitability following a honeymoon of 2 or 3 quarters which it will enjoy as a public company.”Read Article
The initial-public-offering filing by Snap Inc. has generated a lot of attention, as one of the largest technology IPOs in years and an offering that could value the company at up to $25 billion.
Because of its social messaging app, Snapchat, and large valuation, the company SNAP, +0.00% has drawn comparisons to the IPOs of Facebook and Twitter. And during its road show, Snap reportedly said it was the next Facebook, not Twitter, according to the Wall Street Journal, but after it revealed large net losses, investors and analysts are not so sure. “It is concerning, because people got burned with Twitter,” said Santosh Rao, head of research at Manhattan Venture Partners.Read Article
A Los Angeles financial adviser who says he works with sports stars, hip-hop and other celebrities has teamed with an investment firm to help clients get stakes in giant start-ups destined for blockbuster initial public offerings.Read Article
On today’s show, we’ll talk about Facebook‘s fight against fake news articles; reports that Japan has overtaken China as the biggest holder of U.S. debt; and one organization’s effort to get consumers to buy real Christmas trees.Read Article
Analysts who follow Airbnb aren’t so sure. “Revenue will be affected — you can’t get around that,” said Santosh Rao, head of research at Manhattan Venture Partners. But Rao says that while the exact regulatory concessions that Airbnb would make have been unclear, it was obvious to anyone that the company’s game of putting off accepting new rules couldn’t last forever. The events of the past week don’t change how he values the company. “I factored that in,” he said. “It’s not going to be a straight walk.”Read Article
DocuSign shares traded higher about a year ago, said Jared Carmel, managing partner at secondary markets firm Manhattan Venture Partners, in part because the company was reluctant to approve secondary stock sales that were below roughly $16 per share. The company has since loosened those restrictions, allowing trades to happen at lower prices, which has made it easier for employees to cash out some of their stock holdings, Mr. Carmel said. DocuSign did not respond to requests for comment.Read Article
Santosh Rao comments in “Airbnb Turns the Volume Down on Its Fights With Regulators Everywhere”. Airbnb has always operated under a cloud of legal uncertainty as it battled city governments over how to regulate its network of short-term rental properties. The company has been kicking it into high gear to clear the situation up in recent days. On Wednesday, it released a report laying out its approach to local regulations, trying to capitalize on a weeklong stretch in which it agreed to enforce limits on rentals in London and Amsterdam, dropped a lawsuit against New York City, and praised new rules in New Orleans as a potential nationwide model.Read Article
Jared Carmel, managing partner at Manhattan Venture Partners, another firm that works with investors in secondary private tech shares, said he has spoken to buyers, mostly hedge funds and so-called “family offices” that represent groups of wealthy individuals, which currently want to invest around $200 million in Snap. But he hasn’t been able to find shares to buy.Read Article
There are multiple reports that Snap, Inc., the company that owns the messaging app Snapchat, is getting ready to go public. The company reportedly expects to be valued at up to $25 billion, and its IPO could serve to test the waters for other big tech companies that have been relying solely on venture funding.Read Article
Despite stellar growth, Facebook shares dropped 7 percent in after-hours trading as some investors realized there will someday be a limit to how fast Facebook can grow. The company is on pace to reach $27 billion in revenue this year, with third-quarter profits nearly tripling to $2.38 billion. Monthly users grew by 16 percent to 1.79 billion — much of it international. But Facebook warned that next year it would reach a limit on how many ads it could place in people’s feeds. Many analysts fully expect a slowdown in growth in 2017.Read Article
Snap‘s appointment of a new CFO last year, Drew Vollero, was a signal that the company was likely starting to think about a market debut, Santosh Rao, head of research at Manhattan Venture Partners, said.
“The way these guys are ramping up revenue is amazing,” Rao added, explaining that Snap has developed a following among a fickle, yet desirable, age group of between 18 to 34.Read Article
Wolff, of Manhattan Venture Partners, said the volatility index is not telling the whole story at this point.
“Certainly, the volatility suggests a very calm, still situation, when the election and the general public debates suggest the opposite,” he said Friday.Read Article
This year, we found that 41 percent of Gen Z survey respondents said that a corporate office is their top work preference, compared to only 28 percent in 2014. “I have always been motivated by those working around me which influences and encourages me to push myself,” says David James, a venture capital equity sales rep at Manhattan Venture Partners and Gen Z member.Read Article
Ameera talks to Manhattan Venture Partner’s Max Wolff about why Apple is having a hard time breaking into India, the world’s third largest smartphone market. Plus, in the Big Deal, Ed Harrison breaks down the latest data on the UK’s economy post Brexit and whether he thinks a recession is in the cards.Read Article
New statistics show Japan’s economy nearly stalled in Q2, reveals Ameera David. RT’s Anastasia Churkina reports on the delay of an official Brexit. Bianca Facchinei looks at where Google Fiber went wrong. RT’s Marina Portnaya reports on how much Olympians make for bringing home medals. Ameera sits down with Max Wolff, chief economist at Manhattan Venture Partners, to talk about Apple. And in the Big Deal, Ameera and RT’s Ashlee Banks discuss the growing threat of data breaches at hotels.Read Article
It comes as video and text messaging apps, like Google’s new Allo and Duo, increasingly play the role of the one-stop shop that was once the job of the operating system, Wolff told CNBC’s “Closing Bell” on Tuesday. Google originally announced the app at its developer conference earlier this year, where the artificially intelligent connections between the new apps was the highlight of the event.Read Article
“Uber China hit its max,” said Max Wolff, chief economist at Manhattan Venture Partners, which swaps cash for stock with shareholders in closely held firms. “Uber China went out for a higher valuation and couldn’t get it and then sold [to Didi] for its last valuation at $7 billion. That implies some substantive head winds.”Read Article
“However, Santosh Rao of Manhattan Venture Partners thinks the acquisition is a “win-win proposition” for both companies. Speaking as a guest on CNBC Tuesday morning, the professional researcher explained why he likes the deal.”Read Article
“We see the rage around messaging apps and delivery services as emblematic of valuations way out on the skinniest of skinny branches. Ironically, the last great bubble ended with frothy excitement about an army of delivery services. Then again, that was back in the dark ages before smartphone apps dispatched drones.”Read Article