US-headquartered software development technology provider GitLab filed for an initial public offering on the Nasdaq Global Market on Friday that would represent an exit for internet and technology group Alphabet.
GitLab has produced a software platform centred on DevOps, where software development and IT operations are combined to facilitate continuous product delivery. It increased revenue 69% year on year to $108m for the six months ending July 2021, though its net loss rose from $43.5m to $69m.
The company was valued at $6bn in a November 2020 secondary share sale in which investors including Alta Park, HMI Capital, Omers Growth Equity, TCV and Verition bought a total of $195m in stock.
The last primary round to be closed by GitLab was a $268m series E in September 2019 co-led by investment banking firm Goldman Sachs and multi-family office Iconiq Capital at a $2.75bn valuation.
Adage Capital Management, Alkeon Capital, Altimeter Capital, Coatue Management, D1 Capital Partners, Franklin Templeton, Light Street Capital, Tiger Global Management, Y Combinator’s Continuity Fund and Two Sigma Ventures also took part in the series E round.
Alphabet unit GV invested $4.5m to join Goldman Sachs Principal Strategic Investments, Iconiq Capital and Khosla Ventures to provide $120m in series D funding for the company the previous year at a $1bn valuation.
GV had already led GitLab’s $20m series C round in 2017, following $20m of series B round funding from Y Combinator and Khosla Ventures in 2016. It had previously raised $5.5m from Khosla Ventures, 500 Startups, Tuesday Capital, Sound Ventures and Liquid 2 Ventures.
Khosla Ventures is the company’s largest external shareholder, the owner of a 14.1% stake, followed by Iconiq Capital (11.6%), August Capital (11.1%) and GV (6.6%).
Goldman Sachs, JP Morgan Securities, BofA Securities, UBS Securities, RBC Capital Markets, Truist Securities, Piper Sandler, Cowen and Company, KeyBanc Capital Markets and William Blair & Company have been appointed underwriters for the offering. GitLab has set a $100m placeholder target for the IPO.
