Atlanta-based Greenlight says it wants to go public in the next 12 to 18 months
Greenlight’s app, which can be linked to a debit card, lets parents pay their kids to do chores and set spending controls, among other services. Children can use it to buy and sell stock with parental approval.
The company, founded in 2014, has raised more than $550 million in venture-capital funding, including $260 million from a Series D round in April led by venture-capital firm Andreessen Horowitz. Greenlight says it has over 4.5 million paying users in the US
Greenlight said it recorded more than $100 million in annual recurring revenue during the first nine months of 2021. The company declined to provide other revenue figures.
Chief executive Tim Sheehan said the company’s finances were previously managed by controller Ashley Bacher and sometimes a partial CFO. Greenlight decided to bring in a permanent CFO to help prepare for its IPO and to devise a corporate strategy for expanding its business, Mr. Sheehan said.
Listing on the public markets will give the company greater access to capital, along with other benefits such as building relationships with investors, Mr. Dong said. He said the company hopes to pursue a traditional IPO or direct listing, as opposed to going public through a merger with a special-purpose acquisition company.
Mr Dong said he will likely focus on allocating capital to support business growth through further investments in marketing, acquisitions and manufacturing of products.
“One of the things I bring to the table is that I have seen what it takes to take companies to the next level of growth,” said Mr. Dong, referring to his investment-banking experience. Mr. Dong said he has advised technology companies on public offerings, financing and acquisitions, with clients ranging from large-cap businesses to early-stage startups. For example, he worked on Tesla’s IPO. Inc.
Twitter in 2010 Inc.
in 2013. Most recently, he helped bring on cryptocurrency exchange Coinbase Global. Inc.
In the public markets via direct listing in April.
David George, a general partner at Andreessen Horowitz, said Greenlight will likely invest money in new products. “The biggest investment they can continue to make is on the product side,” he said.
A spokesman for Andreessen Horowitz declined to say how much the venture-capital firm contributed to Greenlight’s most recent fundraising round, which marked its first investment in the company.
Greenlight also said it has named Will You as Chief Operating Officer and Sameera Rao as Chief Technology Officer. Mr Yu, who joined Greenlight in October, most recently led finance and operations for RealCadre LLC, a real-estate finance company that does business as Cadre. Mr Rao, who is set to begin his new role on December 16, most recently served as the technology head at digital payments company PayPal Holdings. Inc.
[email protected] . on Mark Maurer