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August marked a month of strong IPOs and acquisitions in the startup space––and today I’ll be sharing some of my favorites.

But before I reveal the startups that made the list and the hottest sectors last month…

One thing you’ll notice about the startups and companies I’m going to talk about is that they’re all tackling real problems we face as a society.

Whether it’s tapping into science to bring forward the next medical breakthrough…

Or developing the next wave of clean battery technology.

These companies are contributing to the NEW economy that’s unfolding right before our eyes.

As you’ll see, there are some BIG exits on this list.

And more than likely, Angel Investors (the first to invest) walked away with handsome returns when these deals closed.

I’ve outlined the most vital pieces of MY Angel Investing strategy in this FREE investing guide.

 

A Big Month For Startups

 

Despite all that’s happening in the world, August was a good month in terms of Initial Public Offerings (IPOs) and acquisitions

While some industries are struggling, others like MedTech had over a half-dozen strong IPOs. 

To illustrate the kinds of opportunities that are still available during these difficult economic times, we made this August Startup Round-Up to show you the big news and big moves in the startup world.

Without further ado, here is just a small selection of the IPOs and acquisitions that took place in August of 2020.

 

August Startup IPOs

 

Checkmate Pharmaceuticals

Checkmate uses the power of the immune system to fight cancer. A manipulated virus-like particle is injected into a tumor, alerting the innate immune system to kick into action. The body then directs anti-tumor T cells to attack the injected tumor as well as other tumors in the body.

The startup has been working on developing and commercializing this proprietary technology since 2015. All of the hard work paid off — August 6, 2020, the startup went public raising $75 million

 

XPENG

Electric Vehicle (EV) company XPENG has changed the EV market in China. They design, develop, manufacture, and market “smart EVs”. Through a focus on autonomous driving, smart connectivity, and their core vehicle systems, XPENG has grown into an industry leader and earned themselves an IPO. 

XPEV is now live on the NYSE. They raised just shy of $1.5 billion in the offering.

 

Acutus Medical 

Next, we have Acutus Medical, developing MedTech to treat complex cardiac arrhythmia. This irregularity of the heartbeat can sometimes cause severe and potentially fatal symptoms and complications. To combat this, Acutus uses a special platform for monitoring and displaying the heart’s true activation pattern, showing electrophysiologists a clear vision of the problem.

The company’s IPO was a huge success, earning around $159 million. AFIB is now traded on NASDAQ Global.

Want to become a startup investor? I outline the most vital pieces of my Angel Investing strategy in my latest investing guide, the Startup Investor’s Playbook. Download your FREE copy today (retails for around $49)…

 

Rackspace

Rackspace offers cloud services, business intelligence, ERP, CRM, data services, security, and more. The “multi-cloud solutions expert” gives customers a suite of cloud-based tools and intel to build up their revenue streams and increase efficiency.

Their model has been a major success, earning an IPO while being ranked one of the best places to work by Fortune, Forbes, and Glassdoor.

The IPO raised just over $703 million

 

Duck Creek Technologies

Duck Creek offers a FinTech solution to insurance companies. Aimed at property and casualty insurance carriers, they make SaaS products that improve IT, insurance products, business practices, and customer experiences. 

Duck Creek’s IPO raised $405 million.

 

Oak Street Health

Oak Street Health is disrupting the current state of care delivery for Medicare patients. The goal here is to drastically improve the quality of care for the most at-risk populations. Oak Street capitalizes on the trend in healthcare towards value-based care and increasing patient consumerism. The result is better health outcomes for patients and lower medical costs.

This innovative model has taken Oak Street to an IPO after 20 years in business. The offering raised $328 million.

 

Greenpower Motor Co.

Another EV vehicle company, Greenpower Motor Co. also went public in August. Greenpower is a leading designer, manufacturer, and distributor of a line of battery-electric vehicles. They make transit buses, school buses, shuttle buses, double-decker buses, and cargo vans. All buses are battery powered with zero emissions.

A secret to Greenpower’s success is its use of global suppliers for key components. By buying drive motors from Siemens or TM4, brakes from Knorr, and control systems from Parker, they can meet very specific specifications while providing ease of maintenance. 

The IPO raised $37 million for the company.

 

Kubient

Kubient is an AdTech company that offers a cloud-based SaaS platform for trading digital advertisements. This is an open marketplace that gives advertisers and publishers access to machine learning ad auctions while reducing their exposure to fraud.

The only AdTech IPO on the list, Kubient had a successful offering of $12.5 million.

 

ibex

ibex is a Customer Experience (CX) company. They outsource CX solutions to protect their clients’ investments, mitigate their financial risks, and accelerate their ROI. This outsourced system is a paradigm shift in the CX world as they turn to digital marketplaces and serve increasingly digitally-native customers.

Now IBEX on NASDAQ Global, ibex went public to the tune of $90 million.

 

CureVac N.V.

Another big MedTech startup, CureVac is using messenger ribonucleic acid (mRNA) to create a new class of transformative medicines. mRNA plays a central role in the production of proteins in every living cell. By harnessing mRNA the body’s natural processes can be mimicked to repair or synthesize specific proteins that combat and prevent illnesses. CureVac is the pioneer of this incredible technology. 

Another huge one, CureVac N.V. raised $213 million in its IPO.

 

August Startup Acquisitions

In addition to these IPOs, we saw an impressive number of big acquisitions in August. Here are a few of the most interesting and ground-breaking. 

 

BabbleLabs

Cisco Systems Inc. announced that it will buy BabbleLabs. BabbleLabs makes noise removal and speech enhancement technology that will greatly benefit Cisco’s video meeting experiences. If you have ever been on a video call when a dog starts barking or a siren goes off, you must be able to see the value in this. 

BabbleLabs technology processes noise removal at the source where the noise happens rather than after the fact. This promotes customer’s privacy and security. 

 

Crypsis Group

Palo Alto Networks declared that it has entered a definitive agreement to acquire the Crypsis Group in August. Crypsis is a firm that offers incident response, risk management, and digital forensics services. 

The agreement lays out a purchase price of $265 million.

 

Node

SugarCRM has acquired an artificial intelligence startup, Node. A competitor of Salesforce, SugarCRM has over 2 million users worldwide. Node’s AI will give its acquirer automation features similar to Salesforce. 

This acquisition comes after a full year of startup shopping and acquiring in an attempt to improve the SugarCRM platform.

 

Drone.io

Harness is a Continuous Delivery as-a-Service platform for engineering and development teams to release applications into production. Put simply, Harness helps teams add new features, make changes and bug fixes, and run experiments, easily and in real-time.

Drone is a continuous integration software that helps developers to build, test, and deploy their code. Harness acquired drone in August to extend its continuous services specifically to the programming side of app development. 

We don’t have figures on the deal yet, but this will be Harness’ first acquisition after raising $80 million in private funding.

Author: Chris Graebe

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