Just over 12 months ago, SafetyCulture raised $34 million at a $2.7 billion valuation, but now only raised $165 million at a slightly lower valuation.
👉 Background: SafetyCulture started back in 2004 as a safety checklist app. But since then, it has also expanded to perform checks, report issues and capture data across a whole range of industries.
👉 What happened: Just over 12 months ago, SafetyCulture raised $34 million at a $2.7 billion valuation, Now, SafetyCulture is back at the well again, raising $165 million at a slightly lower valuation of $2.5 billion.
👉 What else: Interestingly only $75 million of the new capital will be allocated for growth. The other $90 million will go towards secondary sales.
💡A secondary sale is when shareholders of a private company sell their shares to another buyer. By doing this, the company isn’t creating new shares but ownership of existing shares is changing.
💡Given SafetyCulture is still a private company, it's hard for the founders, early investors and early employees to cash in on some of their gains without a major liquidity event, like a sale or IPO.
💡Interestingly, as part of this SafetyCulture capital raise, Blackbird Ventures sold shares held by its earliest fund, and also bought shares from its more recent fund. So it effectively has used its more recent fund to return money to its earliest backers.
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