A local blockchain startup is dipping its toes in the initial public offering waters.
Chia Network Inc. has confidentially filed its IPO paperwork with the Securities and Exchange Commission, it said Friday. Should the South San Francisco company go through with its offering sometime soon, it would be the first Bay Area business to go public since February and only the third this year.
Its IPO paperwork comes amid growing scrutiny of cryptocurrency businesses by the SEC and other regulators.
"We believe the SEC is sincere in their desire for projects to come in and register, so here we are," Gene Hoffman, Chia's CEO, told Bloomberg in a statement. "We've chosen this path," he continued, "because we believe it's the right thing to do."
As recently as January, Hoffman told Bloomberg that while the company planned on filing for an IPO in the near future, it didn't think it would be able to go public this year.
Chia hasn't yet decided how many shares it plans to sell or determined a price range for them, it said in a press release.
The company has developed blockchain technology that it's designed to be more secure and to use less power than older alternatives.
Chia's backers, which include Richmond Global Ventures and Slow Ventures, valued it at $500 million two years ago. Since it was founded in 2017, the startup's raised a total of $112 million.
The company's IPO paperwork comes amid a prolonged dry spell for the region's startups. Since the beginning of last year, just four companies based in the Bay Area have completed IPOs that raised more than $50 million.
Much of that has to do with how the investors have frowned on newly public companies amid economic uncertainty, high inflation and tightening credit markets. The majority of Bay Area companies that went public in 2020 and 2021 have lost more than half their value since their debuts.
Here's more Bay Area venture and startup news from the end of the week:
Fundings
- Astranis Space Technologies Corp., San Francisco, $200 million: Andreessen Horowitz led the equity and debt round for this developer of broadband communications satellites, according to Bloomberg. The deal came with a valuation of $1.6 billion, according to the report. Astranis' backers last valued it at $1.4 billion as part of an funding round two years ago.
- BioVentrix Inc., San Ramon, $48.5 million, Series A: Andera Partners led the round for this developer of a catheter for treating heart failure patients. Cormorant Asset Management, Taglich Brothers, Squarepoint Capital and Richmond Brothers also invested.
- Distyl AI Inc., San Francisco, $7 million, seed: Coatue Management and Dell Technologies Capital led the seed round for this developer of software designed to help companies integrate generative artificial intelligence technology into their operations.
- Companion Labs Inc., San Francisco, $6 million: Lerer Hippeau and Digitalis Ventures invested in this developer of an artificial intelligence-powered dog treat dispenser.
- Onset Labs Inc. (dba Ampersand), San Francisco, $4.7 million, Seed: Matrix Partners led the round for this provider of service that helps link other cloud-based services. Base Case Capital, Flex Capital and 2.12 Angels also participated.
- Paperphones Inc. (dba Myxt), San Francisco, $2 million, Seed: Accel and Quiet Capital led the round for this developer of a collaborative audio workplace app.
M&A
- Zoom Video Communications Inc. announced plans to acquire Workvivo Ltd. for an undisclosed amount. Based in Ireland and Boston, Workvivo offers and employee communications app. San Jose-based Zoom offers video conferencing software.
Funders in the news
- Lux Capital raised $1.15 billion for a new fund. The Menlo Park and New York-based venture firm plans to use its new capital to invest in hard science and deep technology companies.
- Spark Capital has added Fraser Kelton as a venture partner. Before joining the Boston and San Francisco-based VC firm, Kelton was the head of product at San Francisco's OpenAI LLC.
