- Spark Capital was one of the big winners when Uber announced Monday the $ 2.6 billion acquisition of the restaurant delivery service Postmates.
- The venture capital firm has invested in other big hitters in the startup world, including Slack, Plaid, and Mirror, the fitness tech startup that sold to Lululemon for $ 500 million.
- It’s unclear how big Spark’s comeback will be at Postmates.
- The fund raised $ 1.35 billion earlier this year to fund other early and growing startups.
- Visit the Business Insider home page for more stories.
When Uber announced the acquisition of the $ 2.65 billion restaurant delivery service Postmates on Monday, one of the big winners was Spark Capital, a venture capital firm that was one of the first sponsors of Postmates.
Spark led a $ 16 million investment round in Postmates in 2013, and participated in several subsequent funding rounds, resulting in what is likely to be a sizeable return. Just a week before the Postmates news, Mirror, a fitness tech startup that was also a Spark investment, sold to workout apparel brand Lululemon for $ 500 million.
And Spark has had several other successes in the past few months, creating a remarkably brilliant streak in a challenging year marked by the coronavirus pandemic and economic downturn.
Earlier this year, Spark raised $ 1.35 billion to fund early and growing startups, according to the Wall Street Journal.
With offices in Boston and San Francisco, Spark was founded 15 years ago, making it relatively young among venture capital firms. But it showed quickly: According to a recent Pitchbook study, Spark’s $ 360 million Capital III fund was among the top ten funds launched between 2010 and 2012.
The firm, founded by Bijan Sabet, Santo Politi and Todd Dagres, focuses on early and middle stage “growth” companies. Some of his past successes include Twitter, Tumblr, and Foursquare.
Spark Capital partner Nabeel Hyatt wrote in a blog post that the company was attracted to Postmates, when the Postmates app was known as Get It Now. Hyatt, who was one of the first investors at the time, said he joined the Postmates board as one of its first members, and worked closely with Postmates CEO Bastian Lehman.
It’s unclear exactly how big Spark’s comeback will be at Postmates. A company representative did not return a request for comment.
As companies continue to work remotely, workplace productivity tools like Slack are also having their time. But Spark was way ahead of the curve as it entered Slack’s $ 160 million Series S round in 2015.
Here’s a look at some of Spark Capital’s recent big wins:
Tartan:
In January, Visa acquired the startup Fintech Plaid for $ 5.3 billion. Spark Capital partner Santo Politi contributed to the startup’s Series C funding round, which raised $ 250 million in December 2018.
Mirror:
As gyms remain closed across the country due to fear of contracting coronavirus, people are looking to exercise at home. Training clothing brand Lululemon acquired Mirror, a New York-based company, the Spark Capital-backed fitness team that offers interactive training classes through its interactive mirror. Spark Capital led the $ 13 million funding round in 2018, when Mirror was still in stealth mode.
Sonder:
Spark Capital recently raised $ 170 for Sonder, the hospitality startup considered to be one of Airbnb’s rivals, in its Series E funding round last June. The company is reportedly valued at $ 1.3 billion.
Nylas:
After acquiring June.ai last March, Nylas, a startup that helps people integrate emails using APIs, received $ 25 million in funds from Spark Capital last June.
Warby Parker:
Warby Parker, the fashion retailer that sells prescription glasses and sunglasses, is also part of the Spark Capital portfolio. And while many retailers struggle to resist the economic shock of the coronavirus pandemic, Warby Parker’s strategy has always focused on allowing customers to pick and choose their favorite glasses from the comfort of their homes.
JFrog:
DevOps startup JFrog, valued at $ 1.2 billion, added board members last April when it made preparations to go public in late 2020 or early 2021. Spark Capital participated in the Series D round of the startup, which was led by Insight Partners and raised $ 165 million in October 2018.
Grammatically
Grammarly, the software company that uses AI to improve its writing, is valued at more than $ 2 billion. Spark Capital, along with other high-profile venture capital firms like SignalFire and General Catalyst, raised $ 110 million for Grammarly in 2017.
