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action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2023\/05\/23\/cava-ipo-analysis\/<\/a><\/br> Have you ever<\/span> eaten at Cava? I have not<\/a>, but fans of the fast-casual restaurant chain that serves Mediterranean food were quick to explain the company on Twitter after it filed a Form S-1 for its IPO<\/a> recently.<\/p>\n \u201cIt\u2019s chipotle for 30+ people who feel like they should eat more fiber,\u201d joked Neeraj Agrawal<\/a>, a denizen of a crypto-focused think tank. Opinions here at TechCrunch were more split, with space reporter Aria Alamalhodaei calling it<\/a> \u201cone of [her] favs,\u201d while transport reporter Rebecca Bellan<\/a> described it as \u201cfake Israeli food.\u201d<\/p>\n The Exchange explores startups, markets and money. <\/em><\/strong><\/p>\n Read it every morning on TechCrunch+<\/a> or get The Exchange newsletter<\/a> every Saturday.<\/em><\/strong><\/p>\n Regardless of who is right, lots of folks have eaten at Cava. That\u2019s thanks to the company rapidly expanding its footprint in the United States from 22 locations in 2016 to 263 in the first quarter of 2023. Part of that growth came from a 2018 purchase of rival fast-casual chain Zo\u00ebs Kitchen<\/a> for about $300 million.<\/p>\n Cava is not the first venture-backed fast-casual restaurant chain to go public that TechCrunch+ has written about: Sweetgreen went public in late 2021<\/a> after setting an impressive fundraising track record<\/a>.<\/p>\n Cava\u2019s investor base includes a mix of venture firms (Revolution, Riverbend Capital) and other capital, such as private-equity firm Act 3 Holdings and growth equity outlet Kitchen Fund. The restaurant chain\u2019s most recent funding round, a $190 million deal<\/a> led by T. Rowe Price Group, valued it between $1.3 billion and $1.5 billion, depending on which source you\u2019re looking at (PitchBook says that deal was $230 million).<\/p>\n <\/a>What matters for our purposes is that Cava is a venture-backed company going public at a unicorn valuation.<\/p>\n Oh, how I have missed IPO filings! Akin to a cup of cool water for someone in a desert, public offerings present a wealth of hard data that can help us better understand startup markets and companies\u2019 potential worth at exit. Sadly, because Cava is a fast-casual chain and not, say, a web3 company or a software startup, it doesn\u2019t serve well as a comparable for tech startups looking to go public.<\/p>\n But, this IPO could take a large chunk of invested capital and return it to Cava\u2019s backers and founders. Capital recycling through large exits is a key tenet of the venture model, and with exit volume in the gutter<\/a>, any liquidity is good liquidity right now.<\/p>\n With Sweetgreen\u2019s own IPO in the rearview mirror and its Q1 2023 results in hand, we can endeavor to land at a working valuation range for Cava. That will let us estimate how well its backers will do in its exit. And, we can consider what impact the company\u2019s IPO may have on other startups looking to go public.<\/p>\n Sound good? Let\u2019s Cava-ort and have some fun!<\/p>\n <\/br><\/br><\/br><\/p>\n
\nCava\u2019s listing won\u2019t bring back IPOs, but it could deliver welcome investor liquidity<\/br>
\n2023-05-23 21:53:07<\/br><\/p>\n
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\nMuch ado about lunch\t\t\t<\/h2>\n<\/div>\n