Website-hosting service Squarespace Inc. propelled onward with plans for a direct listing, skirting a cadre of technology-oriented companies that didn’t need to raise money in a traditional initial public contribution.
- Squarespace would accompany a handful of other technology-based companies — most lately cryptocurrency exchange Coinbase Global Inc. — in choosing a direct listing over an IPO, said news reports.
- Squarespace is intending to list its shares on the New York Stock Exchange, the choice for every major direct listing except Coinbase. While finance banks don’t underwrite offerings as they do in IPOs, they appraise the company on the listing. Squarespace is working with banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co.
- Led by patron and Chief Executive Officer Anthony Casalena, Squarespace strives against publicly traded rivals Wix.com Ltd. and GoDaddy Inc., among others. The New York-based company is supported by investors including General Atlantic, Index Ventures, and Accel. “Squarespace has prospered by providing anyone a way to participate in the immense possibility that comes from publishing and transacting on the internet,” Casalena said in a letter to investors included in the filing.
- Rather than going after big initiatives, Squarespace concentrates on self-employed people and small businesses. New York-based cloud infrastructure provider DigitalOcean also centers on smaller entities for growth. The company reported $621.1 million in revenue in 2020, up 28% year over year. Squarespace wants to grow its business by signing up new customers and get existing clients to use more of its services, including tools for retailing products online.