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Palantir seeks funding, delaying IPO: Bloomberg
Posted on Friday, 06 September 2019 11:48
Palantir Technologies, a controversial data-analytics company, is pumping the breaks on its long-awaited initial public offering (IPO) and is instead pursuing a private round of funding, people familiar with the matter told Bloomberg. According to the sources, the Silicon Valley-based group has approached overseas investors, including Temasek Holdings and Softbank, Group, to discuss potential financing plans. Palantir, co-founded by billionaire Peter Thiel, is expected to raise a “significant amount” of funding, the insiders noted, adding no deal has been reached at this time. The company started out analysing huge amounts of data for the US Department of Defense and other federal agencies and is behind key missions such as the capture of terrorist Osama bin Laden. Palantir also has contracts with the Department of Homeland Security and large business customers including Merck and Airbus; however, Bloomberg observed it has been struggling financially. People with knowledge of a meeting held by Thiel with company employees told the news provider that the company will not go public anytime during the next two to three years. The business was initially said to be planning a stock market flotation in 2020. Founded in 2004, Palantir has never been profitable, despite being valued at USD 20.00 billion in a funding round in 2015 and with some investment banks suggesting the group could be worth USD 40.00 billion, Bloomberg noted. According to an investor, who asked to remain anonymous as the information is private, the company is building its first ever sales team to sell new product Foundry to non-government customers and the group’s balance sheet is the strongest he has ever seen it. Zephyr, the M&A database published by Bureau van Dijk, shows there have been 82 IPOs of data processing, hosting and related services providers announced worldwide in 2019 to date. In the largest of these, US ride-hailing group Lyft raised USD 2.34 billion on Nasdaq. Pinterest, also based in the States, fetched USD 1.43 billion, while UK-based Trainline and US-headquartered Tradeweb Markets also completed IPOs this year. © Zephus Ltd