One year after becoming a unicorn, Fever raises a relevant round again. The online entertainment platform unveils before the US stock market regulator (SEC) the extension of 70 million dollars (about 65 million at the current exchange rate) in which, according to the same brochure, a dozen partners have received. The company gave entry to the investment arm of Goldman Sachs in the last round of January 2022, which led the transactions, in which Atresmedia also participated. The movement is added to the one that Wallapop has completed.
Traditionally, this Spanish startup, which has its headquarters in the United States, publishes its capital operations in the US SEC. He did it in January 2022 and, predictably, he does it now. In the document, consulted by La Información, the date of the first sale of shares is established on January 11. Although it was this week when the formal presentation signed by the CEO, Ignacio Bachiller, was made.
Specifically, the total expansion is 70 million dollars (65 million euros). Of course, at the date of the presentation of the brochure, 68.4 million have been covered by investors, leaving 1.5 million pending, which, in all probability, will be reached. The rights of the participating investors are not specified, although it does point out that a dozen partners have supported it. There are no changes to the board of directors, so it is clear that there is no external leader beyond Goldman Sachs, Atresmedia and the rest of the funds. Everything indicates that it is a mainly internal expansion covered by current shareholders.
This new injection comes a year after having raised a very significant amount that placed the company as a new Spanish unicorn. He communicated that he had obtained 227 million dollars (the notification to the SEC established 221 million). Goldman Sachs broke through in a relevant way, through its ‘private equity’ investment arm (GS Growth Equity) with which it has invested in companies such as Carta, Docplanner or Wolt. Two funds specializing in the consumer and media sector such as Alignment Growth and Goodwater Capital also landed.
On the company’s board of directors, the visible heads of those relevant shareholders remain as directors. For Alignment Growth there is Kevin Tsujihara, who was CEO of Warner and who declined in 2019 due to a sex scandal. In the case of Goldman Sachs there is Stephen Kerns and in the name of GoodWater Capital there is Hatim Ketty. On behalf of Atresmedia is Javier Nuche, the head of the diversification division of the media group that owns La Sexta or Antena 3.
For Atresmedia, Fever is one of its main bets. As the same group admits in its 2021 annual report, it entered through the formula known as ‘media for equity’, that is, advertising in exchange for shares. Subsequently, it contributed more direct capital to maintain positions. After the round in early 2022, the group held just over 10% of the share capital on a fully diluted basis, after considering the stock options and plans granted to the management team. This position has a value, according to that last valuation that was set, around 100 million.
The business model of the company directed by Bachiller since 2015 is based on the marketing of leisure events, both its own and those of third parties. Atresmedia itself assured in its 2021 annual accounts that the company has experienced “very significant growth” in recent years both in sales and in geographical expansion. The progressive unblocking of mobility restrictions after the outbreak of Covid has contributed to a certain improvement.
The parent company is based in the United States, but the Spanish subsidiary has a relevant workforce that at the start of last year was more than 600. The subsidiary registered revenues of 28.3 million, double that of a year earlier. This business volume corresponds to more than 90% of re-invoicing to the American parent company, but it reflects a strong increase. He received an inspection from the Treasury that he complied with, which involved the reimbursement of 2.6 million in VAT and Corporate Tax for the commissions charged as an intermediary between the organizer of the events and the final clients.
Unicorns add capital
This new round of Fever is added to the one executed by Wallapop for 81 million, signed at the end of last year and contributed mainly by the Korean giant Naver through its venture capital fund Korelya. This extension, which implies a slightly upward valuation but only due to the entry of new money, has been designed more as an extension of the one signed in 2021 and will serve to provide enough gasoline to endure an unstable year 2023 for investment in this type of companies
These types of transactions, such as Wallapop’s, are becoming more common at this time of certain doubts among venture capital investors specialized in startups. Companies seek to insure their box. It is committed not to go to the market to raise a new round with new partners, with valuations under examination, and opts for internal rounds, extensions or notes that will be defined in future actions.