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Falling flat: Blue Apron slashes IPO expectations [datagraphic]

Set to begin trading Thursday, Blue Apron has priced its public offering at $10 per share—the bottom of its revised range—in what’s the first major consumer IPO since Snap debuted in March.

Set to begin trading Thursday, Blue Apron has priced its public offering at $10 per share in what’s the first major consumer IPO since Snap debuted in March. That figure sits at the bottom of its downwardly revised range and is significantly lower than the initial terms Blue Apron established last week, when the provider of a meal-kit subscription service estimated a price range of $15 to $17 for its public debut.

The offering values the New York-based company at $1.89 billion, slightly lower than the $2 billion valuation it reached with a $135 million funding in 2015 and a sharp decline from previous estimates: Based on its initial price range, Blue Apron expected to be valued at more than $3 billion. A number of concerns among institutional investors reportedly led to the low valuation, including looming competition from Amazon after its acquisition of Whole Foods and the possibly unsustainable size of Blue Apron’s marketing budget.

Even with the lower-than-expected valuation, there will be some VC winners. Bessemer Venture Partners—where Blue Apron co-founder and CEO Matt Salzberg was previously an investor—has backed the startup across all funding stages and holds a 22.8% stake, making it the company’s largest institutional investor. BVP could be looking at an estimated 15.4x return on its investment with the offering.

Check out the datagraphic below for the key facts and figures regarding Blue Apron’s IPO:

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    Written by Dana Olsen

    Dana Olsen was a senior writer at PitchBook, covering all things venture capital. She has a BA from UC Santa Barbara and a JD from Loyola Law School.

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