Internet Company, SurveyMonkey has raised a huge $800 million in debt and additional equity funding. It is the largest private capital raised by any Internet company. SurveyMonkey seeks to distribute in a tender offer, according to sources with knowledge of the development.
The internet company made this move to allow employees and early investors cash out of the Palo Alto Networks Inc (NYSE:PANW), California - an online polling company - as it has no plans of going public.
$450 million out of the total was raised from new investment coming from a number of new investors, including CEO, Dave Golberg and Tiger Global management. This investment of $800 million will bring SurveyMonkey's valuing at $1.3 billion.
Interestingly, Google is one of the new investors. It did not invested through its Google Inc (NASDAQ:GOOG) investment arm, but via a new investing vehicle that was designed by the search giant to focus on late-stage companies with good business model like SurveyMonkey. The company is on the profitable side and has been putting cash in its operations and expansion from current revenue.
It was, however, expected that early investors like Bain Capital and Spectrum Equity and also early employees, along with the original founder were going to be rewarded, as there is no initial public offering in the near future.
Spectrum bought the company in 2009 and hired the well acknowledged Silicon Valley Entrepreneur, Goldberg as CEO. He is expected to keep hold of the large share during recapitalization. The $350 million in debt is being led in a syndicate by JPMorgan Chase & Co. (NYSE:JPM), said sources.
In November 2012, Tiger Global Management LLC purchased 9.9 percent of Groupon Inc (NASDAQ:GRPN)'s outstanding shares. Through various firms owned by the hedge fund, 65,000,000 shares of the Daily Deals Company have been acquired. Tiger Global Management’s hedge fund was founded by Chase Coleman and is managed by both Chase Coleman and Feroz Dewan. The stake is worth approximately $200 million.