Website services company Squarespace is reportedly seeking a $400 million credit facility, a move that generally precedes an initial public offering (IPO), according to a report by Bloomberg.
The listing could happen in the year 2021, and Squarespace wants to get the credit facility settled before then. Unlike some other companies worth more than a billion dollars, Squarespace is cash-flow positive, which should bode well for its chances.
The company received a valuation of $1.7 billion in December of 2017 after General Atlantic invested $200 million in the company. Other firms, including Accel and Index Ventures, have also invested.
Squarespace’s advertising strategies vary from podcasts to the Super Bowl. Its main competitors are Wix.com and GoDaddy.com.
The company has been steadily growing. In April, it acquired Acuity Scheduling, a platform to help small businesses manage appointments online. In October, it purchased Unfold, which is an app that allows users to create stories throughout all social media platforms.
“As part of our pursuit to be the all-in-one platform for anyone who wants to stand out, we’re excited to welcome the publishers of Unfold into the Squarespace family,” Squarespace CEO Anthony Casalena told a news outlet in a statement at the time. “Whether building a business or personal brand, social media is a place where many creators get started before launching a website. As a first in our category, we’re excited to provide our customers with a way to stand out no matter how they are getting started.”
The app is available for free, or a paid version is available at $2.99 a month. Squarespace said the app has been used to create over 700 million stories.
Getting a credit facility from Wall Street can be fortuitous for both parties. A company will often reward a bank for pre-IPO help, and a bank will often offer better rates in return.
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