Editor’s note: This post original reported that Antonio Rodriguez lead Matrix’s initial investment in Care.com, which is inaccurate. The investment was made by Nick Beim, who is now with Venrock. Our apologies for the mistake.
It’s been almost two years since a Boston tech company went public. But in the next few days, that statement might very well be subject to change.
The IPO is expected to be completed on Thursday, with shares expected to hit the New York Stock Exchange on Friday under the ticker symbol “CRCM.”
News broke in mid-December that the Waltham-based company had plans to IPO in early 2014. Now, we’re breaking down what you need to know in anticipation for the Hub’s first tech company’s public offering in nearly 730 days.
Care.com was founded in 2006 by Sheila Lirio Marcelo – now CEO and one of Boston’s prominent women entrepreneurs – along with Dave Krupinski, Donna Levin and Zenobia Moochhala.
The company’s hallmark website matches caregiving services for children, seniors and pets, providing people with easy access to hundreds of caregiver providers, who can also share experience and exchange advice.
According to the firm’s SEC filing, Care.com currently has 9.7 million members on said website, up from 1.9 million members in 2010. That sum shakes into 5.2 million families and 4.5 million caregivers across 16 countries.
The company employs 357 people full-time and 186 part-time employees in its Waltham headquarters.
The company rakes revenue from subscription fees, ranging from $37 for a single month and $147 annually, to its matching services. With a subscription, users gain the opportunity to connect with caregivers and use the site’s tools, such as background checks, as well as search, post and preview caregiver profiles at no additional cost.
Care.com has made four acquistions in the past two years. German caregiver site Besser Betreut was bought by the company in the July of 2012 for $23.3 million, paid largely in equity, according to Bloomberg. A month later, Care.com swiped up Breedlove & Associates for $53.9 million in cash and stock. Those still at Care.com holding stock stand to benefit from the company’s upcoming IPO.
Care.com’s two most recently acquired companies have significantly less sweet of deals. In December 2012, the company acquired yet another company, Parent in a Pinch, for $1.6 million in cash. In June 2013, Care.com made its final acquisition of online group management community platform Big Tent, before its IPO for $700,000, also in all cash.
Since its inception, Care.com has raised $109 million in total capital. The company raised its $5.8 million Series A in 2006 from local firm Matrix Partners and Greylock Partners VC and Co-Founder of LinkedIn Reid Hoffman. Former Matrix investor now with Venrock, Nick Beim, led the firm’s initial investment in Care.com, and Antonio Rodriguez of Matrix now currently sits on the company’s board of directors.
Matrix Partners, also based in Waltham, has continued on in each of Care.com’s following rounds, all the way up to the raise of a massive Series E round worth $50 million in July 2013.
Matrix Partners is the largest investor in the company and holds 22.2 percent of the shares. Trinity Ventures, which participated in Care.com’s $10 million Series B round, has 14.3 percent of shares. New Enterprise Associates, headquartered in Maryland with a satellite office in Cambridge, and West Coast latecomers Institutional Venture Partners hold 13.3 percent and 10.2 percent of shares, respectively.
Care.com announced earlier in January that it plans to price its shares priced between $14 and $16 apiece.
Care.com plans to sell 5.35 million shares on Friday, meaning that its IPO could raise up to $85.6 million – a sum just north of the company’s planned $80 million, according to its original SEC filing in mid-December.
If shares sell at the upper end of the aforementioned range, the firm could have a total market value of $475.9 million.
Stay tuned to BostInno on Friday morning to see how Care.com’s IPO shakes out.