Five years ago, Sequoia partner Alfred Lin called Tony Xu, the originator of a small on-demand delivery startup named DoorDash, said he was moving on the company’s seed round.
Of course, this was, before venture capital funding in food delivery startups had taken off.
DoorDash began out of Xu’s Stanford graduate school dorm room, which was not worth Sequoia’s capital yet.
Now, venture capitalists are evaluating the San Francisco-based company at a massive $12.6 billion with a $600 million Series G.
Fresh investors Darsana Capital Partners and Sands Capital took part in in the deal, which almost doubles DoorDash’s prior valuation.
Along with them, current backers Coatue Management, Dragoneer, DST Global, Sequoia Capital, the SoftBank Vision Fund and Temasek Capital Management took part too.
As for Sequoia’s Alfred Lin, he recognized his mistake years ago and dived in on DoorDash’s 2014 Series A, and has engaged in every succeeding round since.
DoorDash, a graduate of Y Combinator’s Summer 2013 group, is also supported by Kleiner PranhaliRajePerkins, CRV and Khosla Ventures, amongst others.
In whole, the company has raised $2.5 billion in VC funding, earning it one of the most well-capitalized individual companies in the U.S.
SoftBank, through its prolific dealmaker Jeffrey Housenbold, was liable for making DoorDash a unicorn in early 2018.
The almost $100 billion Vision Fund began DoorDash’s $535 million Series D, evaluating the business at $1.4 billion.
Only three months ago, the SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia and Y Combinator placed an extra $400 million in the fast-growing business.
The Success of DoorDash
At a venture capital-focused program hosted in April, DoorDash CEO Tony Xu stated that DoorDash was the most significant delivery program in America.
This is because of its “large, broad margins,” revealing that it was increasing 4x quicker than its next closest rival.
In this morning’s statement, the company added that it increased 60% since its late February Series F, with its yearly total sales scoring $7.5 billion in March, an improvement of 280% year-over-year.
DoorDash is presently operating in more than 4,000 cities in the U.S. and Canada, along with hundreds of partners, which includes both restaurants and supermarkets.
The company additionally operates DoorDash Drive, which enables businesses to use the DoorDash network to create their deliveries.
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