OpenTable Going IPO
OpenTable is an online reservation system for restaurants that started eleven years ago. Thus far about 90 million table reservations have been made on OpenTable. They have filed an S-1 with the SEC indicating that they are ready to go IPO. OpenTable is hoping to raise $40 million from the IPO and wants their stock to be listed under the NASDAQ. Merrill Lynch is bookrunning the deal.
The company has made $41.3 million in revenues based on the first 9 months of 2008. This is a 41% increase from the year before. Revenue is generated by restaurants that pay subscription fees (54%) and reservation fees (42%) that show up through the system. Installation fees generate 4% of OpenTable’s revenues.
Through the IPO, OpenTable is hoping to raise an additional $40 million. Between 1999 and 2000, OpenTable raised about $48 million in VC funding. Fortunately former eBay executive Jeff Jordan was able to street the company through the bubble and make it as far as IPO. When a web 1.0 company makes it this far, you just have to commend it.@amitchowdhry or on Google+ at +AmitChowdhry