Iconiq Growth Gains More Than $1 Billion in ServiceTitan IPO
In This Article:
(Bloomberg) -- This week’s public market debut for tech startup ServiceTitan Inc. brought big windfalls for early investors — including returns of more than $1 billion for Iconiq Growth and over $800 million for Bessemer Venture Partners, according to people familiar with the matter.
Most Read from Bloomberg
ServiceTitan, a Glendale, California-based software provider for the home services industry, finished its first day of trading at $101 a share on Thursday, a 42% boost from its listing price. The company has a fully diluted valuation of about $10 billion, according to Bloomberg estimates.
The firms’ returns are based on the value of the stock this week, and could change as the price fluctuates. Bessemer and Iconiq declined to comment on their holdings, as did Battery Ventures, another major investor. The people familiar with the numbers asked not to be identified discussing private information.
In conversations with ServiceTitan’s board members on Thursday, Will Griffith, general partner at Iconiq Growth, said that “the business was ready to meet the market as soon as the time was right.” Byron Deeter, partner at Bessemer Venture Partners, was similarly enthusiastic, saying that ServiceTitan has “transformed an entire industry.”
The successful public offering is a cause for celebration for venture capital investors writ large. Venture-backed IPOs have been scarce in recent years, starving VC firms of returns and casting a pall on the industry. But ServiceTitan’s success on Wall Street could encourage more tech companies to follow.
“As a result of this IPO going super well, I would expect a lot of companies to go public in 2025,” said Nina Achadjian, a partner at Index Ventures, which also invested in the startup.
Index is a backer of a number of pre-IPO companies that have been watching to see whether there’s demand for new tech listings, Achadjian said. Many investors are hoping that more startups will take the leap in the next 12 months.
Since its founding in 2007, ServiceTitan has raised about $1.5 billion in total funding according to PitchBook data. It was valued at $9.5 billion during the pandemic boom years, but raised money at a discount in the bust that followed, making a deal that included terms that encouraged it to go public sooner. Its valuation is now higher than it was at its pandemic peak.