- 13th June 2019
- Posted by: Muff lbr
- Category: Innovation, Technology
- Alphabet owns significant stakes in Uber, Lyft and Crowdstrike, three of the most high-profile tech IPOs of the year.
- CapitalG, the company’s late-stage investment group, is the third-biggest shareholder in CrowdStrike with a stake worth about $1.2 billion.
- Alphabet said in its latest quarterly report that the total carrying value of its non-marketable equity securities is almost $13 billion.
Alphabet’s $100 million-plus wager on security software vendor CrowdStrike has been overshadowed by its investments in more high-profile companies like Uber, Airbnb and Stripe. But it may be more lucrative than any of them.
After CrowdStrike surged 71% in its stock market debut on Wednesday, Alphabet’s late-stage investment group, CapitalG, owns a stake worth close to $1.2 billion, representing about a 10-fold return in just under four years (including share purchases from 2015 through 2018).
Last week, CapitalG tripled its money in Looker when parent company Alphabet bought the data analytics start-up for $2.6 billion, two years after the investment group led an $81.5 million financing round.
As one of Alphabet’s so-called Other Bets, CapitalG has taken stakes in about three dozen companies, according to its website, with a focus on financial technology, marketplaces, tech infrastructure and cybersecurity. CrowdStrike, which develops cloud software for securing enterprise data, marks Alphabet’s first big win in security. It also had a small stake in Zscaler, which went public last year, and is an investor in pre-IPO vendor Cloudflare.
“Google Capital, like us, believes that the only path forward to solving the current and future security challenges will be driven from the cloud,” CrowdStrike CEO George Kurtz wrote in a blog post at the time of the 2015 investment.