Matty Erickson 
Dragoneer Investment Group is a leading growth-oriented investment firm that has partnered with numerous companies to fuel their growth. This is evident in their most recent partnership with SpotOn, a software platform that provides businesses with customer data, marketing and payment processing solutions.
Dragoneer Investment Group recently led a $300 million series F funding round for SpotOn, valuing the company at $3.6 billion.
Overview of Dragoneer Investment Group
Dragoneer Investment Group is a leading growth-oriented investment firm that works with highly-flexible capital and innovative thinking to fuel high-growth sectors. Founded in 2009, the firm has become one of the most respected and sought-after early stage investors in technology, media, food and beverage, health care, financial services and other disruptive industries. Dragoneer is headquartered in San Francisco but manages investments from offices worldwide.
At Dragoneer, our experienced professionals focus on strategic transactions involving equity investments and add-on acquisitions of companies within our target sectors. We look for businesses with leadership teams committed to long-term success and deeply passionate about creating value for customers and shareholders alike.
Dragoneer’s investment philosophy includes investing “patient” capital in a diversified portfolio of companies at all stages of growth—from founding through late stage—with a focus on return maximisation while maintaining disciplined approach to risk management. The team looks for high potential opportunities with strong returns across industry cycles; building collaborative relationships with companies in our target markets; offering an unbiased approach to strategic guidance through informed decision making; partnering with industry specialists who can introduce valuable insights into specific markets; committing to being proactive catalysts for change while preserving gender parity in senior leadership positions when possible; adding value where necessary without forcing change; advocating accelerated progress tempered by realistic expectations; serving as thoughtful stewards of public/private company resources in perpetuity.
Overview of SpotOn
SpotOn (formerly Dragoneer Investment Group) is a leading growth-oriented investment firm focused on helping entrepreneurs and investors build dynamic, world-changing companies. Founded in 2006, the firm comprises seasoned professionals with extensive experience in tech, venture capital, consumer products, real estate, and public markets. With offices on three continents, SpotOn has established a global presence to actively source and cultivate high potential businesses for its portfolio.
SpotOn has utilised its deep industry connections and committed capital base to become a thought leader in venture investing. It seeks to partner with innovative entrepreneurs and corporate strategics who dare to think differently about building their long term growth visions into reality. With a seemingly relentless commitment to bold innovation and continual evolution, SpotOn has become one of the industry’s most sought-after players.
SpotOn Raises $300 Million in Series F Funding Led by Dragoneer Investment Group; Transaction Values Company at $3.6 Billion
SpotOn, an integrated payments, software and marketing platform for small businesses, recently closed a $300 million Series F fundraising round led by Dragoneer Investment Group. This transaction values the company at $3.6 billion, making it one of the most valuable fintechs in the U.S.
Let’s take a look at the details of the transaction and how it could benefit both companies.
Overview of the transaction
On Tuesday, June 16th, 2020, SpotOn announced that it had closed a $300 million Series F funding round. The round was led by Dragoneer Investment Group and joined by existing investors including Activant Capital, Greylock Partners and Menlo Ventures. This transaction is the largest-ever capital raise in the local commerce space, valuing SpotOn at more than $1 billion (USD).
SpotOn plans to use the new funds to accelerate product innovation and leverage its reputation as a leading provider of tools to help independent businesses run their operations. SpotOn provides a suite of software products to help businesses acquire more customers, process payments without the wait for manual deposits, navigate marketing complexities with automation and power analytics that help drive decisions for growth. With its tremendous success over the last year in powering digital transformation for small businesses impacted by COVID-19 related restrictions, it’s clear that SpotOn plans to focus on continuing to meet its customers’ needs with cutting edge tools as they open their doors again this spring/summer.
The company has successfully expanded its customer base over the last 12 months – doubling their U.S.-based merchant count and onboarding nearly 50 percent of new customers actively selling goods within 2 weeks. With fresh capital available and current momentum behind them, this news sets up SpotOn for further expansion into other geographies and markets going into 2021.
Details of the investment
The $300 million round was led by Dragoneer Investment Group, with participation from existing investors such as General Atlantic, GGV Capital, Greycroft and Prolific Ventures. The new funding comes on the heels of SpotOn’s rapid growth in customer acquisition over the past 12 months.
This funding will accelerate SpotOn’s mission of helping small businesses grow and succeed through better access to the data-driven technology they need to compete in today’s increasingly digital world. SpotOn is applying this investment to expand its integrated marketing, payments and digital services offering, enabling automated end-to-end customer operations for small businesses. This will include a range of enterprise initiatives to streamline SMB operations from marketing and sales to business operations.
In addition to its expansive product suite, SpotOn plans to increase its geographic reach by entering into new markets across North America this year. SpotOn already has a presence in more than 30 states across the U.S., so this expansion will give even more small businesses access to great automation services that can let them focus on operations and less on administration.
Impact of the investment on SpotOn
With this major investment, SpotOn is now one of the US’s most highly valued private companies. This round of funding will help SpotOn capitalise on its unique capabilities as it continues to grow and deliver innovative products and services to small businesses across the country. In addition, Dragoneer Investment Group’s vast expertise and resources will allow SpotOn to drive accelerated expansion into new markets.
As a result, SpotOn is well-positioned for further growth and success. With this new capital injection, SpotOn plans to enhance product offerings, increase global accessibility and expand its customer base. This investment will also support multidimensional growth initiatives, including but not limited to strategic M&A opportunities, talent acquisition efforts and business expansion activities.
This infusion of capital reinforces our belief that SpotOn’s technology platforms are positioning the company at the forefront of innovation in small business solutions & working capital services space. Additionally, as they focus on creating unique customer experiences that meet time-saving needs while providing unprecedented value-for-money, we can expect their portfolio mix of products & services to evoke strong customer loyalty & engagement over the long run.
Transaction Values Company at $3.6 Billion
SpotOn, the leading platform for delivering next-generation commerce, has raised $300 million in Series F funding led by Dragoneer Investment Group. This round of funding values the company at $3.6 billion and will be used to accelerate its mission to drive the next frontier of connected commerce.
This transaction marks a significant milestone for SpotOn, as Dragoneer Investment Group brings strategic resources and deep industry and technology expertise in accelerated growth.
Overview of the transaction
Dragoneer Investment Group announced on April 13, 2021 that it had completed a transaction valuing the Company at $3.6 billion. This was accomplished by combining new investments from Dragoneer Growth Opportunities Fund, IVP and Byron Trott’s BDT Capital Partners with existing investors, Tiger Global Management and SoftBank Vision Fund 1.
Through a pro rata primary offering, Dragoneer purchased some existing shares and issued some new shares on behalf of the Company. This combination of existing shareholders selling a portion of their positions and recent investors committing fresh capital has resulted in an impressive valuation at closing.
The transaction has created powerful alignment amongst existing stakeholders. It brings in significant ownership value and resources to help drive continued growth for the Company as it enters its next development and expansion stage both domestically and internationally. The financing sets up Dragoneer in an excellent position to capitalise on the opportunities ahead and further define its industry leadership position.
Details of the valuation
Dragoneer Investment Group, a leading growth-oriented investment firm, has announced its transaction of the Cash App at a valuation of $3.6 billion.
The acquisition is made in cash and stocks with no additional debt, and the transaction is expected to close by mid 2020. Dragoneer will also support Cash App by providing resources for scaling its consumer products and merchant services divisions.
Founded in 2013, Cash App provides customers an easy way to send money electronically. It is currently one of the highest rated consumer finance apps on both Google Play and Apple’s App Store. The app has processed more than $12 billion in volume in 2019 alone and expects to exceed that figure this year with the support from Dragoneer.
The valuation placed on Cash App marks a significant milestone as it validates their mission to provide financial access for all customers regardless of age, location or financial background. Additionally, as part of Dragoneer’s newly formed Strategic Group focused on early-stage companies operating in fintech and ecommerce spaces, this acquisition serves as an opportunity for extended strategic support for Cash Apps operations as it continues to scale its product offerings across the US market.
Impact of the valuation on SpotOn
The high valuation of SpotOn by Dragoneer Investment Group highlights the attractive opportunity that emerges from a growth-oriented investment strategy. The company’s valuation at $3.6 billion is a significant milestone and further affirms the company’s rapid growth and trajectory towards strong long-term performance.
The transaction values SpotOn, a customer engagement platform focused on small businesses, more than double its previous evaluation of $1.7 billion in 2018. It raises the company into unicorn status, the highest valuation tier for venture-backed companies. It highlights the positive trends driving SpotOn’s business and a strong recognition for their potential to transform small business loyalty and payments offerings for businesses and consumers.
The crucial funds raised in this transaction allows SpotOn to expand their customer support network and product development initiatives, with particular emphasis on foreign markets, while continuing to scale up their high-value loyalty services tailored to meet individual requirements of SMBs around the globe. As part of these expansions, they will focus on providing best-in-class customer service to help further reduce small business owners’ time spent dealing with administrative tasks while enabling them to devote more time to operations to build better customer relationships.
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