Thats indeed a lots of “Vegan Protein” for Beyond Meat Promoters and Investors

Beyond Meat just concluded IPO demonstrates how sometimes Public Markets completely outprice even the private markets !

Beyond Meat,  a Los Angeles-based producer of plant-based meat substitutes was founded in 2009 by Ethan Brown.  The company has products designed to replace chicken meat, beef, and pork sausage. It supplies to restaurants and supermarkets in US, Canada, Europe (Italy, UK), and Israel.

The Company has just got listed on NASDAQ (BYND – check latest price here) recently and has created significant wealth for its promoters and investors.

Checkout some key highlights of the Company –

  • Total funding raised before IPO – $122 Mn
  • Investors – Obvious Ventures, Kleiner Perkins, Bill Gates, Tyson Foods
  • IPO Value – $1.46 Bn (May 2, 2019 morning)
  • Current Market Value – $4.1 Bn (May 3, 2019 morning)
  • 2018 Revenues – $ 87.9 Mn
  • 2018 Net loss – $29.9 Mn

The Company previously was valuing itself at around $1.22 Bn for IPO before revising upwards to $ 1.46 Bn and here we are almost three times of the IPO price in a single day. 

Amazing how sometimes public market completely outprices the private market…. and this is especially true for loss making companies !

The product is surely interesting, making right noises, is disruptive and getting decent customer feedback but I was wondering would it have continued long term competitive advantage !

All of us remember what happened with Crocs !

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About the author

Nitin Jain

A finance professional with around 20 years of investing experience in Indian markets both on buy and sell side, equity and debt, private and public with some of the best organizations globally including Goldman Sachs, ICICI Group, ICRA and others. He is a All India Silver Medalist CA by qualification.

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