Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Tableau and Marketo Create Whopping Piles of Money With IPO Debuts


iStockphoto | dny59

Two software companies saw their share prices rise by 64 percent and 78 percent respectively in their first day of trading.

Marketo, a cloud-based marketing software company, debuted on the Nasdaq today under the ticker symbol MKTO at $13 a share and closed at $23.10. Its biggest shareholder is venture capital firm InterWest Partners, whose 33.3 percent stake was worth $302 million pre-sale and is now worth north of $565 million.

Tableau Software started trading on the New York Stock Exchange under the ticker symbol DATA. Its shares were priced yesterday at $31 and closed today $50.75. Its biggest shareholder is New Enterprise Associates, which invested a combined $29 million in three rounds between 2004 and 2010 for about 37 percent of the company.

It sold two million shares at $31 in the offering, but still has 17.6 million shares remaining, making its combined gain on Tableau, by my math, worth $955.2 million. On paper that amounts to a one-day gain of 3,194 percent.

Now are you convinced the IPO market is back?

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik