Snowflake IPO creates flood of wealth for Silicon Valley royalty, including Mark Zuckerberg and Jack Dorsey – Financial Post

Multifamily role of work Iconiq Capital’s stake price a staggering US$8.3 billion by Wednesday afternoon

Creator of the article:

Bloomberg News

Bloomberg News

Tom Maloney

Publishing date:

Sep 16, 2020  •   •  2 minute be taught

Facebook CEO Mark Zuckerberg.
Fb CEO Tag Zuckerberg. Photo by Mandel Ngan/AFP via Getty Photography

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Snowflake Inc.’s initial public offering isn’t true rising novel fortunes, it’s adding to the wallets of about a of Silicon Valley’s supreme names.

Iconiq Capital, a multifamily role of work whose customers encompass Fb Inc.’s Tag Zuckerberg, LinkedIn Corp.’s Reid Hoffman and Twitter Inc.’s Jack Dorsey, took section in a pair of Snowflake funding rounds foundation in 2017. Its 12 per cent stake within the corporate, purchased for US$245 million, modified into price greater than US$4 billion on the initial offering designate of US$120. By early afternoon Wednesday, the identical stake modified into price a staggering US$8.3 billion.

Shares of the cloud-computing company inventory surged as excessive as US$319 in Fresh York procuring and selling sooner than dropping back to US$247 at 1: 06 p.m. Even on the initial offering designate, Snowflake modified into price US$33.3 billion, greater than Twitter and nearly triple the US$12.4 billion it modified into valued at in a February fundraising round.

The San Mateo, California-basically based company’s top executives are moreover poised to peer their wealth surge. Four of them — Frank Slootman, Bob Muglia, Michael Scarpelli and Benoit Dageville — collectively possess stakes price $3.7 billion on the offering designate.

Handiest one of them, Dageville, modified into a founder. His stake is smaller than Slootman’s, who joined as chief government officer from ServiceNow Inc. closing one year.

Concurrent with the IPO, feeble CEO Muglia is selling half of his 8.1 million Snowflake shares to Berkshire Hathaway Inc., which is moreover investing an further US$250 million on the IPO designate. Such deals aren’t on the final section of Warren Buffett’s play e book, though in 2018 Berkshire invested within the initial offering of Brazilian fintech StoneCo Ltd.

Buffett’s switch has boosted the already sky-excessive institutional interest within the cloud-computing company, Singh acknowledged. It “positively validates the fantastic thing about Snowflake’s IPO,” he acknowledged.

It’s up to now been a winning bet for Buffett, with the value of Berkshire’s investment greater than doubling by lunchtime.