Friday Fundings: McAfee, Rokt, and Yuanfudao
McAfee Returns to Wall Street
McAfee, a cybersecurity company, re-joined the stock exchange yesterday. McAfee was a public company until it was acquired by Intel (INTC) in 2011 for $7.7 billion. Intel then sold a majority stake in McAfee to private equity company TPG. On Wednesday, the company raised $740 million after selling 37 million Class A shares at $20 each. On its first day of trading, shares hit a high of $19.50, below its $20 IPO price. Shares ultimately ended the day at $18.70.
Despite a difficult first day, McAfee is coming back to Wall Street at a time when demand for cybersecurity solutions is surging. As people continue to work, shop, and socialize online as a result of the pandemic, software to protect against viruses, identity theft, spyware, and other problems is more sought-after than ever. The Global X Cybersecurity ETF (BUG) climbed by about 35% this year. Investors will be curious to see if McAfee’s performance will improve after its first day back on the market.
Ecommerce Software Maker, Rokt Raises $80 Million
Rokt, an ecommerce marketing software company, secured $80 million in Series D funding led by TDM Growth Partners. The new capital boosts the company’s valuation by 42%, bringing it to $450 million.
Rokt provides tools that allow companies to cross-sell and up-sell based on a customer’s past purchases. For example, if a customer buys a printer, Rokt could offer them the opportunity to buy paper.
Demand for online shopping has surged during the COVID-19 pandemic. Between March and September of 2020, consumers in the US spent $466 billion through ecommerce—a 52% increase from the same period last year. The ecommerce boom has also made private equity firms and other investors eager to back companies like Rokt that create technology to support online shopping.
Yuanfudao Raises $2.2 Billion Amidst Remote Learning Boom
Yuanfudao, a Beijing-based education startup, raised $2.2 billion from Chinese and international investors. The new funding brings the company’s valuation to $15.5 billion. One funding round was led by Tencent (TCEHY) and another was led by DST Global.
Yuanfudao facilitates live video tutoring and homework help for students in China. The company was growing rapidly even before the pandemic, but its popularity has boomed due to the rise of remote learning this year. Over the past two years, the company has doubled its total users and currently serves about 400 million students in China. Yuanfudao plans to use the new funding to expand its offerings, develop its curriculum, and to incorporate more AI functionality into the platform.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.