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Startups Weekly: Zoom CEO says its stock price is ‘too high’

When Zoom knocked
the public markets Thursday, its IPO pop, a whopping 81 percent, floored everyone, including its own ruler executive officer, Eric Yuan.

Yuan became a billionaire this week when his video conferencing business went public. He told Bloomberg that he actually wished his stock hadn’t soared quite so high. I’m guessing his modesty and laser focus attracted Wall roadway to his stock; well, that, and the fact that his business is actually profitable. He is, this week proved, not your average tech CEO.

I chatted with him briefly on listing day. Here’s what he had to say.

“I think the future is so shinny and the stock price will follow our execution. Our philosophy remains the same even now that we’ve become a public company. The philosophy, first of all, is you have to focus on execution, but how do you do that? For me as a ceo, my number one role is to make sure Zoom customers are cheerful. Our marketplace is growing and if our customers are cheerful they are going to pay for our service. I don’t think anything will change after the IPO. We will probably have a much good brand because we are a public company now, it’s a brand-new milestone.”

“The dream is coming true,” he added. 

For the most part, it sounded like Yuan just wants to get back to work.

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IPO corner

You thought I was done with IPO talk? No, definitely not:

  • Pinterest completed its IPO this week too! Here’s the TLDR: Pinterest popped 25 percent on its debut Thursday and is currently trading up 28 percent. Not evil, Pinterest, not evil.
  • Fastly, a startup I’d admittedly never heard of until this week, filed its S-1 and displayed a nice way to profitability. That means the parade of tech IPOs is far from over.
  • Uber… Surprisingly, no Uber IPO news this week. Sit compact, more is surely coming.

$1B for self-driving cars

While I’m on the subject of Uber, the company’s autonomous vehicles unit did, in fact, lift $1 billion, a piece of news that had been previously reported but was confirmed this week. With funding from Toyota, Denso and SoftBank’s Vision Fund, Uber will spin-out its self-driving automobile unit, named
Uber’s Advanced Technologies faction. The deal values ATG at $7.25 billion.

Robots!

The TechCrunch staff traveled to Berkeley this week for a day-long conference on robotics and artificial intelligence. The highlight? Boston Dynamics CEO Marc Raibert debuted the production model of their buzzworthy electric automaton. As we noted last year, the company plans to produce around 100 models of the automaton in 2019. Raibert said the company is aiming to begin production in July or August. There are robots coming off the assembly line now, but they are betas being used for testing, and the company is still doing redesigns. Pricing details will be announced this summer.

Digital health investment is down

Despite notable rounds for digital health businesses like Ro, known for its direct-to-consumer erectile dysfunction medications, investment in the digital health space is actually down, reports TechCrunch’s Jonathan Shieber. mission investors, independent equity and corporations funneled $2 billion into digital health startups in the first quarter of 2019, down 19 percent from the nearly $2.5 billion invested a year ago. There were also 38 fewer deals done in the first quarter this year than last year, when investors backed 187 early-stage digital health companies, according to data from Mercom Capital faction.

Startup capital

Byton loses co-founder and former CEO, reported $500M successions C to close this summer
Lyric raises $160M from VCs, Airbnb
Brex, the credit card for startups, raises $100M debt circular
Ro, a d2c online pharmacy, reaches $500M valuation
Logistics startup Zencargo gets $20M to take on the business of freight forwarding
Co-Star raises $5M to bring its astrology app to automaton
Y Combinator grad Fuzzbuzz lands $2.7M seed circular to consign fuzzing as a service

more Crunch

Hundreds of billions of dollars in mission capital went into tech startups last year, topping off big growth this decade. VCs are reviewing more pitch decks than ever, as more people build companies and strive to get a slice of the funding opportunities. So how do you do that in such a competitive landscape? Storytelling. Read contributor’s Russ Heddleston’s latest for more Crunch: Data tells us that investors love a good tale.

Plus: The non-identical playbook of D2C brands

And finally, for the first of a brand-new successions on VC-backed exits aptly named
The Exit. TechCrunch’s Lucas Matney spoke to Bessemer mission Partners’ Adam Fisher about non-stative Yield’s $300M exit to McDonald’s.

#Equitypod

If you enjoy this newsletter, be sure to check out TechCrunch’s mission-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-ruler Alex Wilhelm and I chat about rounds for Brex, Ro and Kindbody, plus exclusive outsider Danny Crichton joined us to discuss the latest in the chip and sensor world.

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