Website-hosting and payments startup Squarespace is going after a direct public listing and sidestepping a traditional initial public offering (IPO), Bloomberg reported on Tuesday (April 13), citing sources.
Backed by General Atlantic, Index Ventures and Accel, Squarespace told the sources that the listing could change, per the report.
The New York-headquartered startup follows Roblox, Palantir, Slack, Spotify and Asana in choosing to file with a direct listing instead of an IPO. The cryptocurrency exchange Coinbase is also planning a direct public listing, according to Bloomberg.
A direct listing gives startups a pass on raising new capital. Further, investors already on board with a company can usually sell shares on the first day of trading. The move also can give businesses a break on banking and other fees.
Founded in 2003 by CEO Anthony Casalena, Squarespace had a $10 billion valuation in March. The company said in January that it confidently filed a draft with the U.S. Securities and Exchange Commission (SEC).
The company first announced plans to go public in January. Casalena said the company was striving to become a one-stop destination to help businesses of any size stand out.
Squarespace has been moving beyond web hosting and last month acquired the hospitality platform Tock, which facilitates online reservations, table management, takeout and events. Founded in 2014 by Nick Kokonas, who serves as CEO, Tock coordinates with a growing network of hospitality platforms, including local eateries, wineries, and pop-ups.
In March, Squarespace raised $300 million at a $10 billion enterprise valuation. The company was planning to use the fresh infusion of capital to help small companies build out their brands. In 2019, the company acquired Acuity Scheduling to enable small businesses to better manage appointments. Squarespace also purchased the social media platform Unfold.
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