DoorDash closes at $189.51, up 85% from its $102 pricing, after popping to $182 as the shares began trading, giving a valuation of $60.2B
turning $680m to $11.5b based on today's opening price. https://www.cnbc.com/... Dare Obasanjo / @carnage4life : What I like most about the DoorDash founding story is that it bucks the entrepreneurial myth of “scratching an itch” and instead it was just some Stanford MBAs & former Facebook interns literally searching for small business problems to solve. https://twitter.com/... Very Tired Alex / @alex : at $130/share, SoftBank's stake in DoorDash is worth ~$8.2B, from $680M investment https://www.wsj.com/... Edward Ongweso Jr / @bigblackjacobin : hmmm ok i am done writing my uber screed, time to relax and look at news and unw— https://www.cnbc.com/...
CNBCJessica Bursztynsky
Context & Ripple Effects
DoorDash's debut caps a two-year valuation climb that the related coverage tracks step by step: a $535M SoftBank-led Series D at $1.4B in 2018, back-to-back 2019 rounds at $7.1B and $12.6B, then a filing range of $75 to $85 that was raised twice before bankers settled on $102. Even after that aggressive $102 pricing above the $90–$95 range, the stock opened near $182 and closed at $189.51 — an 85% first-day pop that values the company at $60.2B.
The company behind the number is the one [[a:947757|SoftBank's capital and a suburb-first strategy turned into the biggest US food delivery app]] after years as a struggling startup. The pop is therefore also a verdict on that bet: SoftBank's $680M position was worth roughly $8.2B at $130 a share and about $11.5B by the opening print.
First-order effects
SoftBank converts its $680M DoorDash investment into a stake worth roughly $11.5B at the opening price — the kind of markup that flows straight into its portfolio marks.
DoorDash raises meaningfully more per share than planned, since the $102 price sits well above both the original $75–$85 filing range and last week's $90–$95 range.
Second-order effects
Earlier backers who bought into the $7.1B and $12.6B rounds now hold positions marked at more than four times their entry valuations, giving DoorDash a $60.2B currency for hiring, retention, and any consolidation moves in US delivery.
Rival delivery platforms face a competitor that just banked an 85% premium to its IPO price, sharpening pressure on them to demonstrate comparable growth or pursue their own listings to keep pace.
Third-order effects
An IPO priced above two successive ranges that still pops 85% revives the underpricing debate: issuers and their banks systematically leave first-day gains on the table when demand runs hot.
If the pattern holds, US food delivery consolidates around a single dominant consumer brand whose scale was built on SoftBank capital and suburban density — raising the bar for any challenger's path to relevance.
The trend: Pandemic-era demand is letting delivery platforms price IPOs above repeatedly raised ranges and still double-digit-pop on day one, minting record private-to-public markups for late-stage backers like SoftBank.
On 5/29/13 (my birthday!), I filed to incorporate Palo Alto Delivery Inc., later renamed DoorDash Inc. It's mostly not my story to tell. But I'll share a bit today about how it started. My goal is to give aspiring entrepreneurs a window into one founding story.
@danprimack
Dan Primack on x
fwiw: Will be interesting to see how large the retail float is on DoorDash. Unity also had a big pop, and bankers said both it and Snowflake were popping on Robinhood effect.
@rabois
Keith Rabois on x
In many ways, DoorDash was probably the most under-appreciated company in my 20 years in Silicon Valley.
@carnage4life
Dare Obasanjo on x
What I like most about the DoorDash founding story is that it bucks the entrepreneurial myth of “scratching an itch” and instead it was just some Stanford MBAs & former Facebook interns literally searching for small business problems to solve. https://twitter.com/...
@sherman4949
Alex Sherman on x
Everyone loves to hate on the SoftBank Vision Fund. But it's only fair to give the fund credit when credit is due. DoorDash is a huge win for them — turning $680m to $11.5b based on today's opening price. https://www.cnbc.com/...
@alex
Very Tired Alex on x
at $130/share, SoftBank's stake in DoorDash is worth ~$8.2B, from $680M investment https://www.wsj.com/...
@bigblackjacobin
Edward Ongweso Jr on x
hmmm ok i am done writing my uber screed, time to relax and look at news and unw— https://www.cnbc.com/...
@amir
Amir Efrati on x
No matter what you think of $DASH valuation & prospects (I have plenty of thoughts) it's an example of a startup that learned to pinch pennies & grow more efficiently than a big co. that started a new line of business to compete w/the startup. In this case, Uber.
@levynews
Ari Levy on x
DoorDash at almost $60 bln is just .. i don't have the vocabulary for it https://www.cnbc.com/...
@chloesorvino
Chloe Sorvino on x
The DoorDash IPO pricing may be crazier than its order fees, from $16B in the private markets this summer to close to $60B where it's currently trading, and now its three cofounders are officially billionaires. https://www.forbes.com/...
@thestalwart
Joe Weisenthal on x
DoorDash trading at $58 billion market cap
@ericjackson
Eric Jackson on x
Congrats to all the early $DASH investors! Great company.... I hadn't ever heard Tony Xu speak until this morning on CNBC. That's how under the radar this company has been
@katie_roof
@katie_roof on x
Make that $68B...the dash for Doordash shares is 🤯 https://twitter.com/...
@lesliepicker
Leslie Picker on x
As we wait for DoorDash to open (now indicated to be up 84%)...two thoughts: (1) This company used a hybrid auction with the goal of limiting the day-one pop (2) Today's DASH trading may encourage Airbnb to be more aggressive with their pricing tonight
@mikeisaac
Rat King on x
this is almost double their opening price im old enough to remember when the chatter was “how is doordash going to live up to it's sky-high valuation b/c of the Softbank investment” COVID really did change everything https://twitter.com/...
@zachweinberg
@zachweinberg on x
My investment in DoorDash all started with a simple email. A reminder to check your email. You might miss things. https://twitter.com/...