Cvent to Go Public via SPAC at $5B Valuation after Being Private for 4 Years

The Wall Street Journal reported the news of Cvent to go public via SPAC at $5B valuation on July 21, 2021. Through this event, they expected to increase a significant capital worth of $801 million in order to provide better service and solution for their customers.

About Cvent

Cvent was established by Reggie Aggarwal in 1999. On its first year, the company was succeeded to gain $17 million of working assets and hired 125 staffs. Unfortunately, it almost fell into bankruptcy later following 2000 stock market crash and the 9/11 terror attacks, causing the company to reduce 80% of its employees.

This event software company bounced back in 2003. It was able to grow 50% annually in 2011. In the same year, on July, it received a $136 million backup from New Enterprise Associates – made it the highest investment for an American software company yet since 2007.

On the following year, Cvent software company acquire CrowdTorch for 4.2 million, which is a startup company based in Austin who is prior known as Seed Labs. A week later, Cvent acquisition target moved to CrowdCompass for $10 million, an application developer company based in Portland.

Cvent to Go Public via SPAC at $5B Valuation after Being Private for 4 Years

On July 2013, the virtual event app submitted S-1 to U.S. Securities and Exchange Commission, in order to proper public going with $5.6 million shares of initial offering. A month later, it was officially listed on New York Stock Exchange with $21 of initial price, resulting in $117.5 increase for the company and market capitalization worth of over one billion dollars.

However, in 2016, this online conference platform was made private again through $1.65 billion acquisition by Vista Equity Partner. It also resulted in a merger with Lanyon, as a part of Vista.

The acquisition deal included the online event platform to merge with Dragoneer Growth Opportunities Corp. II under Dragoneer Investment Group, LLC – an investment firm based on San Fransisco that has capital worth more than $17 billion.

At this point, it had established itself as one of the largest virtual event companies with over 200,000 users across the world and 4,000 staffs. It also successfully gained revenue over $100 million in 2020, based on the report by the Wall Street Journal – which was equal to about 20% annual sales that reached $500 million. The rest constantly came from its conference platform and virtual events managements and marketing.

Back to Public Again

Through the news of Cvent to go public via SPAC at $5B valuation at July 2021, it was official that it would once again turn to be a publicly-traded company. Currently running as Cvent Holding Corp, this deal indicated the increasing value of virtual meeting platforms companies after the pandemic started.

Zoom Video Communications, Inc. was listed as one of the investors in the deal involving Cvent event management. The other listed investors are Hedosophia and Oaktree Capital Management L.P. and Fidelity Management & Research Company LLC.

The Cvent nears $5-Billion-Plus SPAC deal resulted in prospect of raising $801 million capital for this virtual conference company itself. The valuation was claimed to be used to raise research and development, grow product innovation, cut debt, and extend activities in the market.

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