Fresh off $7.5B Debt Financing, CoreWeave Eyes $23B Valuation in Large Secondary Sale
Weekly Edition & Stock Spotlight
October 1, 2024
PM50 Growth Index & Sectors YTD Performance
Most Active Names Performance
Data as of September 23, 2024.
* Price (USD) estimated based on secondary market activity observed by PM Insights (f/k/a ApeVue). Valuation is estimated based on said price and share count from state filings and/or news in the public domain. Note that share count in calculations may change as new filing documents are obtained.
PM50 Growth Privates versus Public Benchmarks/ETFs
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Public v. Private (12mo)
The PM50 Growth tracks the performance of the 50 most active private names observed in the secondary market. It is an equal-weighted index, rebalanced on a monthly basis.
This rebalancing of constituents over time gives way for more active names to participate in what we observe as "market performance," and in a more appropriate manner than static selections and weightings criteria.
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Cloud & Infra AI Hardware
“To deliver innovative, scalable, and cost-effective cloud computing solutions that empower businesses and researchers to accelerate their computational workloads and drive transformative outcomes.”
CoreWeave, founded in 2017 by Brian Venturo, Michael Intrator, and Brannin McBee, is a leading provider of cloud infrastructure specializing in GPU-accelerated computing. The company offers tailored solutions for industries requiring high-performance computing, including AI, machine learning, visual effects, and scientific research.
Business Model
CoreWeave operates on an Infrastructure-as-a-Service (IaaS) model, providing access to a highly flexible and scalable cloud platform. The company generates revenue through subscription-based services and pay-as-you-go pricing, enabling clients to customize their computing resources based on specific project needs.
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Targeted Impact
CoreWeave aims to revolutionize cloud computing by providing cost-effective, high-performance GPU solutions that empower businesses and researchers to tackle complex computational challenges efficiently.
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Who Will benefit?
Industries such as AI, machine learning, visual effects, healthcare, and scientific research will benefit from CoreWeave’s scalable computing power, enabling them to accelerate innovation and reduce time to market.
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What Comes Next?
CoreWeave plans to expand its infrastructure capabilities, incorporate emerging technologies, and form strategic partnerships to enhance its service offerings, further establishing itself as a leader in GPU-accelerated cloud computing.
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CoreWeave Growth Timeline
Key Partners
Prominent News
Cloud-Computing Firm CoreWeave In Talks for Share Sale at $23 Billion Valuation, September 13, 2024 - CoreWeave is negotiating a potential sale of existing shares that could value the company at $23 billion, marking a significant increase from its previous valuations. Click here to read more.
Blue Owl, Chirisa Technology Parks and PowerHouse Data Centers announce first phase of $5 Billion Joint Venture Development Partnership, August 29, 2024 - Blue Owl, CTP, and PowerHouse have formed a joint venture to develop large-scale AI/HPC data centers for CoreWeave, with potential to invest up to $5 billion. Click here to read more.
CoreWeave First to Market with NVIDIA H200 Tensor Core GPUs, Ushering in a New Era of AI Infrastructure Performance, August 28, 2024 - CoreWeave announced it is the first cloud provider to bring NVIDIA H200 Tensor Core GPUs to market. Companies such as Cohere, Mistral, and NovelAI use CoreWeave's infrastructure services train models. Click here to read more.
Revenue
Based on 2024 revenue figures (forecasted) and latest funding round at $19B, CoreWeave currently trades around a 24.64x revenue multiple.
Return on Investment (ROI)
ROI computed as of September 23, 2024.
Funding Round in USD
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Series C Valuation
<span class="date">2024-05-16</span>
<span class="value">$19B</span>
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Implied Valuation
<span class="date">2024-09-23</span>
<span class="value">$22.3B</span>
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Change Since Last Round
<span class="date">2024-05-16 → 2024-09-09</span>
<span class="value green">+17.47%</span>
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Monthly Bid:Ask Volume Ratio
PM Insights highlights the monthly bid:ask volume ratio where there were at least three institutionally-sized broker contributions within that period. PM Insights did not observe activity for CoreWeave before end of October 2023.
July of 2024 had the highest total volume at $282.96M, whereas June of 2024 had the lowest total volume at $18M.
90D Activity
Activity at each date is the total unique broker contributions (bid/ask/trade) within the last 90 days of that date. CoreWeave's activity skyrocketed between June and September of 2024 and reached a total of 37 unique broker contributions between June 24, 2024, and September 23, 2024.
CoreWeave Private Comparables in the Cloud & Infrastructure Sector
PM Insights highlights 4 active private companies that develop chips within the Cloud & Infrastructure sector as of September 23, 2024.
Change in Valuation
PM Insights uses composite prices based on the institutional-sized contributions within the last 90 days to compute implied valuations. PM Insights' current implied valuation reported below is computed as of September 23, 2024 and compared to each company's latest funding round valuation:
- Cerebras Systems' current implied valuation is $6.64B, a 123% increase from its Series F-1 valuation of $2.98B in June of 2024. Cerebras Systems' implied valuation was $2.16B on December 31, 2023.
- Lambda's current implied valuation is $2.20B, a 47% increase from its Series C valuation of $1.5B in February of 2024. Lambda's implied valuation was $229.1M on December 31, 2023.
- Coreweave's current implied valuation is $22.30B, a 17% increase from its recently raised Series C valuation of $19B in May of 2024. Coreweave's implied valuation was $7.31B on December 31, 2023.
- Groq's current implied valuation is $2.75B, a 2% decrease from its Series D valuation at $2.8B in August of 2024. Groq's implied valuation was $1.06B on December 31, 2023.
Activity
The plot below displays the 90-day activity based on institutional-level ($1M+) broker contributions as of September 23, 2024. Cerebras Systems shows the highest activity with 41 contributions. CoreWeave's activity stands at 37.
90D Bid and Ask Volume Ratio
The plot below illustrates the bid and ask volume ratio from June 26, 2024, to September 23, 2024. CoreWeave had the highest total volume at $383M with 18% of its volume on the bid side. Lambda Labs had the smallest total volume at $197M; however, it had the highest bid side ratio at 28%.
Change in Composite Price
The plot below illustrates the change in composite price from August 24, 2024, to September 23, 2024.
Cerebras Systems had the highest increase at 9%, while Groq experienced the most significant decrease at 9%.
CoreWeave's composite price increased by 5% from $874.09 to $915.12.
Volatility of Composite Price
The volatility of the composite price is calculated based on the movement over the previous 90 days as of September 23, 2024. Groq had the highest volatility at 18.3%, whereas CoreWeave had the lowest volatility at 9.3%.
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