This price range means that the company will almost certainly have to grant those Series H shareholders a bunch more shares as part of the IPO, too. If its IPO share price was less than what the Series H investors paid, ServiceTitan agreed to cover the losses, and every quarter it delayed an IPO after May 22, 2024, the company agreed to owe those investors even more. They paid $84.57 a share, it disclosed.
VC Alex Clayton, general partner at late-stage firm Meritech Capital and known for his IPO analysis, was the first to point out that painful ratchet structure in a blog post that went viral. He tells TechCrunch that spending a large chunk of its IPO cash for ServiceTitan to get out of the preferred stock deal “makes sense.”