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Notable Social Networking Private Equity-Backed Venture Capital Deals since Facebook’s IPO

by Jessica Hull

  • 13 Sep 2012
  • PE

Since the highly anticipated Facebook IPO was announced on 18th May 2012, when Facebook stock was priced at the top end of the IPO price range at $38 per share, the stock has almost halved in value to just under $21 per share, its current standing. Therefore, it is perhaps not coincidental that after much prior speculation the venture capital IPO market has markedly slowed; this is likely due to companies being deterred by the unfavourable economic climate coupled with the weak performance of Facebook’s stock over the last four months. However, a number of notable venture capital deals have taken place in the social networking sector since Facebook’s IPO.

Care.com, Inc. is an online community where carers and families can connect to communicate experiences and provide advice on care-related issues. Care.com, Inc. received $50mn in Series E funding in August 2012, having previously raised a total of $61mn since 2006. Institutional Venture Partners led the financing and included participation from returning investors, Matrix Partners, New Enterprise Associates and Trinity Ventures.

Nextdoor is a free private social network provided in the US to strengthen the bonds among individuals in the same neighbourhood. The company picked up $18.6mn in venture capital funding from Benchmark Capital, DAG Ventures, Greylock Partners, Shasta Ventures, and other investors in July of this year. It was reported that this round of funding valued Nextdoor at more than $100mn.

Wattpad is based in Toronto, Canada and is a web-based community for discovering and sharing stories on the web, as well as on mobile devices. Having previously raised $3.5mn Series A round in September 2011, the company upped their game and received $17.3mn in a Series B round mid-way during 2012. The funding was led by Khosla Ventures and saw returning investment from Golden Venture Partners and Union Square Ventures.

Carpooling.com is a social networking website which offers a communication platform for road users to partake in car sharing, as system that offers environmental benefits. A $10mn strategic round of funding was provided by car-maker Daimler, along with previous investor Earlybird and the company’s founders.

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