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2016 IPO Prospects: Glassdoor Gearing up to go Public

Posted on Friday, Jul 15th 2016


Referring to online reviews is no longer restricted to restaurant booking, hairstylists, or your neighborhood dog walker. More and more people are using job review sites like to review their next new job. Little wonder then that the increasing traffic has helped drive valuations upwards as the company gets ready to go public.

Glassdoor’s Offerings

Sausalito-based Glassdoor was founded by Expedia veterans Robert Hohman, Tim Besse, and Zillow co-founder Richard Barton. The company was founded to help people get access to anonymous reviews about potential employers and insights into job interview questions. But it has graduated to more than that. It now allows people to search for jobs and to establish a professional network. The site has more than 30 million users globally, accessing over 10 million reviews for more than 540,000 companies.

Glassdoor operates on a freemium model. Individual users can access the site for free to read and post reviews on companies and even search for jobs. Employers have the option of selecting a paid-for enhanced option that includes features such as access to brand awareness and analytic tools, recruitment engine, the ability to respond to reviews, and even advertise.

Glassdoor’s Financials

Glassdoor may not primarily be a job search engine, but job search is a big part of its offering. And online job search industry is seeing a big upheaval. Recently, Microsoft announced the $26.2 billion acquisition of job search and professional networking site LinkedIn. Another job search site Simply Hired recently shut down after it was reportedly acquired by its parent Indeed.

Meanwhile, in its reviews section, Glassdoor is also facing several issues of user discontent. Since the company does not validate any user information, it is easier for people to fake reviews. The only cleaning that its team of content reviewers does is that of removing malicious and obscene language from reviews. Its paying customers feel that they should be able to remove untrue content based on their premium status. But Glassdoor does not allow customers to do that. Good stance, as it would take away all authenticity from the service.

But despite the worries, Glassdoor’s valuations do not appear to be significantly hurt. It is privately held and does not disclose its financials. It has raised $201 million from venture investors so far including T. Rowe Price, Google Capital, Tiger Global Management, DAG Ventures, Battery Ventures, Sutter Hill Ventures, and Benchmark. Its last round of funding was held last month when it raised $40 million from T. Rowe Price at a valuation of $1 billion. Prior to this round, Glassdoor had raised $70 million from Google Capital and Tiger Global Management at a similar valuation.

Glassdoor claims that it didn’t really need the money, as unlike other companies, it is balancing between growth and profitability. It was attracted by the ability to add T. Rowe Price to its investor list. Some believe that the latest round was a pre-cursor to Glassdoor’s IPO.

Photo credit: David Wall/

This segment is a part in the series : 2016 IPO Prospects

. Airbnb Sees Skyrocketing Valuations
. Actifio Looks Ready
. AppDynamics May Sustain Unicorn Valuation
. Automattic Needs to Justify Valuation
. Avant Will Have to Wait and Watch
. BuzzFeed Feeds on Native Advertising
. Coupa Manages Expenses Expertly
. Datto Bootstrapped First, Raised Money Later
. Is Uber Ready to Ride the Stock Market?
. Overfunded Domo Looks Promising
. Houzz May Unveil The Curtains
. DocuSign Looks Ready to Sign Up
. Illumio Rides On Security Trend
. Appears Ready to List
. Okta Prepares to Reveal Public Identity
. Palantir Wants to Stay Private
. Nutanix Files for IPO
. Medallia Bootstrapped First, Raised Money Later
. Slack Prepares to Communicate with the Market
. Twilio Expected to go Public Soon
. Snapchat Needs to Up Monetization ASAP
. Zscaler Sets IPO as a Long-Term Goal
. Warby Parker Should Look Before Leaping
. MuleSoft is a Unicorn, but Detailed Financials Remain Unknown
. Apttus Bootstrapped First, Raised Money Later
. Fanatics Expanding Its Playing Field
. Pinterest Finally Sees Revenues, But are they Enough?
. Tanium Bootstrapped First, Raised Money Later
. ironSource Strengthening its Revenue Generating Capabilities
. Anaplan Getting Ready to Go Public
. SecureWorks is Ready to List
. IPO-Ready Cloudera Wants to Wait and Watch
. HelloFresh Puts its IPO Plans on Hold
. Is Stripe Lining up Next?
. Qualtrics Bootstrapped First, Raised Money Later
. Skyscanner Bootstraps First from Scotland, Raises Money Later from Sequoia
. SurveyMonkey Will Likely Wait
. The Honest Company Makes the Online to Offline Model Work
. NantHealth Testing the IPO Markets, Yet Again
. BigCommerce Prepares to List
. Bloom Energy Likely to Stay Private
. Avast Software Preparing for a Listing, Yet Again
. Gusto Expands Beyond Payroll Processing
. InMobi May Have Missed the Bus
. Glassdoor Gearing up to go Public
. Human Longevity Leverages Machine Learning and Analytics to Increase Lifespan
. Blue Apron Cooking up an IPO
. Optiv Grows Inorganically
. Uber Eyeing Self-Driving
. The Trade Desk Files to List
. Deliveroo Delivers its Way to the Bank
. Selfie App Meitu Files to List on HKSE
. Apptio Files Despite Reduced Valuation and Mounting Losses
. Snap Snaps out of Chat Business to Justify Valuation
. From Bootstrapping to IPO, BlackLine Shows the Way

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