sonder spac investor presentation
Sonders SPAC deal was first announced in April 2021. This works really well for apartments, which is where we got started, but we realized that we could actually do this and operate hotels more effectively. Any and all subjective claims and statements made on this site regarding companies or securities are strictly the beliefs and views held by Volt and are in no way meant to be an endorsement by Volt of any company or security and nor is it meant to be a recommendation by Volt to buy, sell, or hold any security.Past performance is no guarantee of future returns. We're a design company. So now it's about 50% of our business. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. It projected $4 billion in revenues in 2025, and All quotes delayed a minimum of 15 minutes. I sign off in DocuSign on a summary of all the deals. All material subject to strictly enforced copyright laws. In the past few years, we've shifted away from trying to get into existing buildings that are up and running, but rather working with developers to build new ones or do really substantial renovations on older ones. Funding: Placer.ai, a location-data startup, raised $50 million from Josh Buckley, CEO of Product Hunt; angel investor Todd Goldberg and Rahul Vohra, CEO of Superhuman, an AI-focused email startup. Gores and Metropoulos facilitated an IPO for lidar sensor maker Luminar Technologies last August in a nearly $2.9 billion merger with a different SPAC. Last year, because of the pandemic, it lost almost $198 million, but projects profitability by 2023. WebCombination with Gores Metropoulos II . However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. After the tough year that we've been through, there's one approach, which is stepping back and saying, "Hey, this is rough. Your submission has been received! makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. See here for a complete list of exchanges and delays. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the buyer risks losing the entire premium invested in the option if the buyer does not exercise the option. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Company Profile. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). For more investment insights, sign up for our email list below and subscribe to our YouTube channel. Investors should be aware of the inherent risks involved in investing in the markets and that past performance is not an indication of future results. Over the course of their careers, Messrs. Gores and Metropoulos and their respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. Proptech was no exception, with 15 new SPACs in February followed by 16 in March and just one so far in April, according to TRDs SPAC tracker. The content should not be considered investment advice and is for educational purposes only. Chris Mammone, The Blueshirt Group The combined company will operate as Sonder Holdings, while Sonders common stock and publicly traded warrants will trade on the Nasdaq Global Select Market today under the ticker symbols SOND and SONDW, respectively. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi 2008-2023 Sovereign Wealth Fund Institute. All Rights Reserved. Sonder is a hospitality company focused at short-term rentals. Join the Industrys Brightest Minds in New York City, Business Travelers: A Multi-Country Survey Report, Hotel Tech Benchmark: Booking Engines, Website Builders, and Direct Booking Tools 2023. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. The deal will give Sonder $650 million in cash to scale up. Meaning, you can perform well in 2 dimensions but not in all 3. Takeaway: Even with Sonder's phenomenal historical growth (and jaw-dropping estimated future growth), there will still be a LOTof room for even more growth in this core lodging market for many years to come. For Sonder: The company expects the deal to close in the second half of 2021. Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement (the PIPE). When used in this press release, the words estimates, projected, expects, anticipates, forecasts, plans, intends, believes, seeks, may, will, should, future, propose and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. The business was heavily impacted when the global pandemic brought the travel industry to a halt last year, but has rebounded as it targets millennial leisure travelers, said Chief Executive and co-founder Francis Davidson. On top of that, I think the benefit of our technology here is that it allows us to provide a really elevated stay at a much more affordable price point. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. Past investors in Sonder include Atreides Management, LP, Bezos Expeditions, GreenOaks, Fidelity Management & Research, GreyLock Partners, iNovia, Spark Capital, Tao, Valor Equity Partners, Westcap, and the Wilson family. Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees. His coverage is more complete than his moustache. Gores Metropoulos II raised $450 million in a January IPO, and raised an additional $200 million from PIPE investors, including BlackRock, Fidelity and Senator Investment Group. Sonder confirmed Friday that it will go public by merging with a SPAC backed by billionaires Alec Gores and Dean Metropoulos. San Franciscos short-term rental startupSonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 billion, as market conditions change and SPACs face more headwind. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. Their view is that we'll see a full recovery of revenue per available room by 2023 or 2024, depending on the market. None of Volts proprietary content may be reproduced or referenced, in full or in part, in any other publication without the expressed written consent of Volt. Over the course of their careers, Messrs. Gores and Metropoulos and their respective teams have invested in more than 180 portfolio companies through varying macroeconomic environments with a consistent, operationally-oriented investment strategy. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. Overview | Sonder Holdings Inc. Investor Relations Resources & Information Company Overview Sonder is revolutionizing hospitality through innovative, Many services like the front desk, concierge, customer service, cleaning are replaced with their app. Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. The Registration Statement is not yet effective. We hire and we invest heavily into the communities in which we operate. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to Gores Metropoulos II. Jennifer Kwon Chou It operates over 300 properties in 35 markets, with plans to invest in tech, expand Sonder, founded in 2014, operates short-term rentals out of different types of properties: The company began by operating out of traditional apartments in residential buildings, before expanding to full-building apartment hotels and, more recently, standard hotels. But Sonder is able to score well on all 3 dimensions. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. See here for a complete list of exchanges and delays. Download the Sonder app on Apple or Google Play. 2022. 0001819395-23-000056.pdf. The now United States-based company has strong Canadian roots. The idea is that Sonder is not a short-term-rental company. 333-251663), which was declared effective by the SEC on January 19, 2021. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. Takeaway: Sonder is expecting insane levels of growth, and despite being in a capital-intensive business, sees a rapid path to profitability. is serving as legal advisor to Sonder. The company previously raised more than $560 million and is backed by investors Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. Sign up for notifications from Insider! The content should not be considered investment advice and is for educational purposes only. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. In the past year alone, weve launched in three additional countries and expanded our operations in dozens of other markets, and we expect to continue to scale our business and innovate to adapt to the needs of emerging traveler segments like digital nomads.. Goldman Sachs serves as the financial advisor to Sonder, while Morgan Stanley is the lead financial advisor to Gores Metropoulos. Sonder is a travel tech and hospitality firm that competes with Airbnb, leasing and managing an array of short-term rental units across 10 countries and three continents. Messrs. Gores and Metropoulos together have over 100 years of combined experience as entrepreneurs, operators and investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. !function(){"use strict";window.addEventListener("message",(function(a){if(void 0!==a.data["datawrapper-height"])for(var e in a.data["datawrapper-height"]){var t=document.getElementById("datawrapper-chart-"+e)||document.querySelector("iframe[src*='"+e+"']");t&&(t.style.height=a.data["datawrapper-height"][e]+"px")}}))}(); We appear to be moving pastthe pandemic disruption. The past 2 years have been a hard journey for the hospitality industry and Sonder not only survivedthey thrived, said ScaleUP Ventures Partner Matt Roberts, an early investor in Sonder through both BDC and later, ScaleUP. Zonda acquired BuzzBuzzHome, a new development listing site, for an undisclosed sum. SAN FRANCISCO & LOS ANGELES--(BUSINESS WIRE)--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality company that is redefining the guest experience through technology and design, today announced that it completed its previously announced business combination with Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) (GM II), a special purpose acquisition company sponsored by affiliates of The Gores Group, LLC, and Metropoulos & Co. The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. Sonder revenues are rising while its losses are widening, even as SPAC deals are coming under additional pressure. 2018, US$ 68 million, Net Income For more investment insights, sign up for our email list below and subscribe to our YouTube channel. Gores Group, a prolific dealmaker in the space, has raised 13 special purpose acquisition companies (SPACs) so far. The company currently operates in 70 countries, and CEO Amiad Soto said the funding will go toward market and tech expansion. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. The company says it has 500 customers, including JLL, retail center operators Brixmor and Taubman, along with Planet Fitness and Dollar General. During this period, the adviser was not providing advice using any models mentioned and clients results may have been materially different. Sonder was last valued at $1.3 billion, after raising $170 million in June. All references to available cash are subject to any redemptions by the public stockholders of GM II and payment of transaction expenses. Investing involves risk and possible loss of principal capital. 2021. While the travel industry has faced headwinds with the ongoing pandemic, Sonder has continued to grow at a rapid clip, proving the resiliency of our business model and demonstrating our ability to pivot quickly to address emerging trends and traveler needs. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. The Hail Mary at the time was identifying other use cases. It's going to be really interesting to see how we might be able to capture some of that demand. Gores Metropoulos II, Sonder and their respective directors and officers may be deemed participants in the solicitation of proxies of Company stockholders in connection with the proposed Business Combination. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. Plus, can SPAC investors take advantage of the big moves that are hidden in SPACs with announced deals? Let's also plug in our technology and modernize this hotel so that the customer experience can be improved and the cost structure can go down.". Click here to join the thousands of knowledgeable readers who subscribe to Future City. Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. All this allows them to cut down on operating costs by as much as ~50%. Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Citigroup and Deutsche Bank Securities Inc. are serving as joint lead placement agents on the PIPE. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. Weil, Gotshal & Manges LLP served as legal advisor to GM II. What are you expecting to see in hospitality this year? The results presented should not be viewed as indicative of the adviser skill and do not reflect the performance results that were achieved by any particular client. For proof that travel is back, look no further than Sonders $2.2 billion SPAC deal. We are really proud of what weve achieved to date and want to recognize the dedication of all Sonderites. 1, will be provided in a Current Report on Form 8-K which will be filed by Gores Metropoulos II with the SEC and will also be available at www.sec.gov. We saw that there's a chance that this would spread to the US and our core markets, and if that happened, we needed to be ready to respond. How? These two things have meant that we've gone from funding 84% of the capital expenditure of the deals we did in 2019 to now funding 10%. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. Obviously, tech and automation are part of why you have better profit margins compared to hotels. At a valuation of ~$2B and considering their estimated 2022 revenue, Sonder's revenue multiple would fall below the median multiple of upscale lodging companies like Hilton and Mariott, just above the median multiple of digital hospitality and real estate companies like Redfin and Tripadavisor, and below the median multiple of vertical disruptors like Uber, Doordash, and Airbnb. Sonder had to lay off or furlough one-third of its workforce last spring, while some of its highest-profile competitors were forced to shutter (Lyric) or pivot their business models after layoffs (Zeus Living). The idea of contactless service and skipping the front desk and going straight to your room are things that are now sought out by a larger share of consumers. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? As part of the transaction, Sonder and GMII raised a $200 million fully committed PIPE, led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & I noticed in the investor presentation that they were mentioned, and I also know that you yourself have spent some time living as a digital nomad. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. It currently operates 8,000 (with contracts for 10,000 more). Content is subject to change without notice. We really wanted to build an iconic 21st-century brand, and this is just one of the transitions that are required for it to make that happen. We appreciate our close partnership with the Gores team and with our business combination completed, Sonder now has a very strong balance sheet to aggressively pursue our ambitious growth strategy, revolutionize hospitality, and deliver long-term value to shareholders., "Were proud to have partnered with Sonder and look forward to supporting their next chapter of growth," said Ted Fike, Senior Managing Director at The Gores Group. However, over the last couple of years, Sonder has begun to expand its presence in Montral once more. We believe the addition of this incremental funding brings stability and security, enabling Sonder to be appropriately capitalized to fund our continued growth over the next several years. Hypothetical strategies and indices presented are unmanaged, do not reflect any fees, expenses, transaction costs, commissions or taxes, and one cannot invest directly in any of these. SWFI is a minority-owned organization. Also, Sonder has access to $220 million debt facility with existing PIPE investors, to be available following the closing of the merger, which Sonder says will be enough to fund its growth over the next several years. 2022. This was a theory back in 2018, and we tested it out for a few dozen properties, and it was proved that it's worked extremely well. Chris Mammone, The Blueshirt Group Arguably, business is going to take longer to recover. 2023. Moreover, Sonder has signed a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following the closing of the proposed business combination, which enables the Company to fund its growth over the next several years. The proposed business combination remains on track to close in the second half of 2021, subject to approval by Gores Metropoulos IIs stockholders and other customary closing conditions. For more information, please visit www.gores.com. The US$ 200 million PIPE investment is led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group. These amendments and associated incremental investments by leading institutional investors to adapt to current market conditions strongly position Sonder for long-term growth, and underscore Sonders and Gores Metropoulos IIs collective commitment to driving long-term value creation for all stockholders. EBITDA margin going from (181%) in 2020 to 16% in 2025. After four consecutive quarters in which its profits sagged, the real estate data giant generated $74 million in net income during the first quarter. The SPAC attack is back for a San Francisco-based hospitality startup. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. We thought that's where the hospitality industry was bound to go and where the customer would prefer to go, but COVID has really accelerated that. Sonder began trading on the Nasdaq this morning, after completing its previously announced business combination with Gores Metropoulos II, a California-based special purpose acquisition company (SPAC). We've always built a really financially diligent company, but we took this to the next level. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin WebInvestor Presentation (March 2023)21.8 MB 3Q22 Shareholder Letter5.8 MB 2Q22 Shareholder Letter6.5 MB Cash Flow Positive Plan Presentation1.4 MB 1Q22 The opportunity in residential is so large and our assets have so much potential, CEO Andy Florance said during an earnings call. To ensure the most secure and best overall experience on our website we recommend the latest versions of, Internet Explorer is no longer supported. Our mission is really one of democratization here. Forward-looking statements include information concerning Gores Metropoulos IIs or Sonders possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, including whether this proposed Business Combination will generate returns for stockholders. As part of the deal, Sonder will secure approximately $310 million USD in private investment in public equity (PIPE) capital and $165 million in delayed draw notes to support its new and existing growth initiatives. The vast majority, around 80%, of our guests are less than 50 years old. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. Terms werent disclosed. In an investor presentation, Sonder said it generated $116.2 million in revenue in 2020 and lost $240.6 million. Instantly search thousands of Decks by world-leading companies on Slidebook SPAC December 2016 Despegar Mergers and Acquisitions Sonder Start Up January 2019 Related decks Tripadvisor Investor In connection with the proposed Business Combination, Gores Metropoulos II has filed a registration statement on Form S-4 (the Registration Statement) that includes a preliminary proxy statement, consent solicitation statement and prospectus with respect to Gores Metropoulos IIs securities to be issued in connection with the proposed Business Combination that also constitutes a preliminary prospectus of Gores Metropoulos II and will mail a definitive proxy statement/consent solicitation statement/prospectus and other relevant documents to its stockholders. Sonder will retain its experienced management team. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. It's early to say how large that demographic is going to be in the years to come, when the world is reopened and offices are reopened, but it's going to be more than what it was before the pandemic. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. However, the company reported up a loss of $54.6 million for its second quarter, on an adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] basis. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.The content on this site is not intended to serve as financial advice nor should it be the sole basis for any investment decisions. Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. Also, securities and options traded in over-the-counter markets may trade less frequently and in limited volumes and thus exhibit more volatility and liquidity risk.The content on this site is not intended to serve as financial advice nor should it be the sole basis for any investment decisions. Sonders leases are also subject to early termination. Opendoor tapped Squares Mike Cieri as vice president of product for its buyer team. Moelis & Company LLC acted as additional financial advisor to GM II. Brokerage giant Realogy struck a massive deal with MoxiWorks, a real estate software startup. Finsbury Glover Hering Web10. Global Wealth Conferences - SWFI Event Series, Money Losing, Short Term Rental Platform Sonder Gets Saved by Gores SPAC. Volt does not purport to provide any legal, tax, or accounting advice. The landlord is funding it. UPDATE: SONDER. Sonder the lodging startup known for turning properties into short-term rental buildings is going public via a special acquisition company (SPAC), Gores Metropoulos II, that values the newly combined company at $2.2 billion, Sonder announced Friday.. Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 investor presentation) It's interesting to see how Sonder's narrative has evolved from when they Were thrilled to have a committed and creative partner in Gores and the amendments, and incremental investment announced today will allow us to pursue our ambitious growth and expansion strategy in full force. The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. Media Contacts WebLaunched in 2014 and headquartered in San Francisco, Sonder provides a variety of accommodation options from spacious rooms to fully-equipped suites and apartments SPACs are shell companies that raise funds to take a private company public through a merger at a later date. Media Contacts Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. Yet, their recent historical growth rate has been MUCH higher than the median of each of those industries. With property level profit margins going from (54%) in 2020 to 32% in 2025. As part of the proposed business combination, the Company will receive approximately $110 million in incremental capital from affiliates of Gores Metropoulos II and other leading investors including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, and Senator Investment Group pursuant to the New PIPEs, in addition to the $200 million Existing PIPE, which continues to be led by affiliates of Gores Metropoulos II, with participation from top-tier institutional investors including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, funds and accounts managed by Principal Global Investors, LLC, and Senator Investment Group. OR CEO Francis Davidson co-founded Sonder as a college student in Montreal in 2014. Revenue tripled, the company said. Earlier this month, the firm said it would buy Homes.com for $156 million. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Messrs. Gores and Metropoulos together have over 100 years of combined experience as entrepreneurs, operators and investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. An additional $200 million is expected from private investors including BlackRock, Fidelity Management & Research and Senator Investment Group. It's like a hybrid of Airbnb and Hilton, turning apartments into hotel suites. Please contact our IR department. According to Sonders calculations, the company would need to have 34,889 live units with to have a positive adjusted EBITDA of US$ 24,201,000. Thats due to the leadership and staff who built a flexible model thats been proven at scale, Roberts told BetaKit. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. "If travel demand dries up, let's find traveling nurses. Additionally, the Company has put in place a non-binding term sheet for Delayed Draw Notes of $220 million with existing PIPE investors, to be available following closing of the proposed business combination. All pictures below are taken from Sonder's investor presentation, the entirety of which can be downloaded from Sonder's investor relations page. Behind him was eXp World Holdings Glenn Sanford with $15.9 million and Zillows Rich Barton with $8.4 million. Thank you! For full disclosures, please go to our Terms & Conditions page. Why are you in such a good position to go public now when it's been a challenge across the board for your competitors? These forward-looking statements are based on Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. April 19, 2023. Driven in part by increasing supply from 12k total units (live + contracted) in 2020 to 102k total units in 2025. Plus, a startup that tracks our cell phones raised $50M.
