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Chronicles

The story behind the story

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Source: DoorDash is raising $100M at a ~$13B valuation from T. Rowe Price Group and others

DoorDash Inc.'s $2 billion war chest is getting even bigger.  The food delivery startup, backed by the likes of SoftBank Group Corp. and Sequoia Capital, is receiving a new cash infusion of $100 million …

Bloomberg Candy Cheng

Context & Ripple Effects

DoorDash's valuation has roughly doubled every few quarters on the way up: talks at a $1B valuation back in 2015 gave way to SoftBank's Series D at $1.4B post-money, then a $250M raise at $4B once the company claimed it hit the metrics SoftBank set. By February 2019 it was raising $400M at a $7.1B post-money, and just three months later Darsana led a $600M round at $12.6B.

Today's $100M from T. Rowe Price tops that off at roughly $13B and pushes the total war chest past $2B. The notable shift is who is writing the check: a mutual-fund manager joining SoftBank and Sequoia on the cap table is classic pre-public positioning, not venture risk capital.

First-order effects

  • DoorDash's cash reserves swell past $2B while its valuation ticks up from $12.6B to about $13B within six months — and T. Rowe Price becomes the first traditional asset manager named among its backers.

Second-order effects

  • A mutual fund taking a late-stage position effectively underwrites an eventual IPO path, letting DoorDash keep spending on delivery subsidies without pressure to reach profitability first — a cost floor its rivals must match or cede share against.

Third-order effects

  • If the pattern holds, top consumer marketplaces will keep deferring public listings by cycling through crossover and mutual-fund rounds at ever-higher private marks, widening the gap between private valuations and what public markets will eventually price.

The trend: Late-stage private markets are absorbing mega-rounds from mutual funds rather than pushing companies public, letting high-burn leaders like DoorDash stockpile multi-billion-dollar war chests before listing.

Discussion

  • @lisaabramowicz1 Lisa Abramowicz on x
    DoorDash is now worth $13 billion, according to recent private-market valuations. https://www.bloomberg.com/...
  • @eringriffith Erin Griffith on x
    “One martini is all right. Two are too many, and three are not enough.” https://twitter.com/...
  • @mattrosoff Matt Rosoff on x
    $13B for an unprofitable delivery company. Ought to be interesting. https://twitter.com/...
  • @shiraovide Shira Ovide on x
    I sure would love to know the terms of this investment. There's little chance DoorDash can IPO in this environment, and everyone knows it. So... https://twitter.com/...