Zoom and Salesforce win $ 23 million after Israel’s Monday.com IPO

At Zoom’s IPO two years ago, Salesforce made a package by investing $ 100 million at the asking price and watching the stock skyrocket. Zoom learned something from that experience.

Zoom and Salesforce bought $ 75 million worth of shares in Israeli software company Monday.com, which debuted on the Nasdaq on Thursday. Monday.com, which provides cloud-based collaboration tools, didn’t have a Zoom level pop, but the stock was up 15%, going from $ 155 to $ 178.87, giving both investors a quick profit. on paper.

At the close of the deal, Zoom and Salesforce’s share had risen to $ 86.55 million, giving each a one-day profit of $ 11.55 million. Like the experts at Monday.com, Zoom and Salesforce are subject to lockdown restrictions and cannot sell for 180 days.

For Salesforce, buying IPO shares has become another way for its venture arm to generate returns beyond traditional investments in startups and later-stage tech companies. In addition to investing in the Zoom and Monday.com offerings, Salesforce invested $ 250 million last year in Snowflake’s IPO, a stake that more than doubled to $ 529 million on the company’s first day of operations. database.

In 2020, Salesforce reported an annual profit of $ 2.17 billion on its investments, primarily from Snowflake and software provider nCino, a company that Salesforce supported long before its IPO last year. In previous years, Salesforce Ventures invested in Dropbox and SurveyMonkey IPOs.

At Zoom, investing is a new business. In April, the video chat company launched a $ 100 million fund to support startups that would build features and functions in addition to Zoom. However, those deals will be much smaller, given that Zoom’s investment in Monday.com equals 75% of that entire fund. According to PitchBook, this is Zoom’s first known investment of any size.

While a 15% jump in one day is certainly attractive, it is significantly below the kind of bursts the market has seen in recent years and that Salesforce has enjoyed. IPO prices have generally tightened this year after massive first-day 2020 gains at Snowflake, DoorDash and Airbnb sparked further criticism that companies are leaving too much money on the table to hand out cheap stocks to new investors. .

LOOK: Bill Gurley in the IPO Market

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