Backblaze has officially become a public company. This announcement brings several benefits for the company, its partners and customers.
Backblaze’s transition to the public markets allows it to raise capital, access bigger markets, increase visibility, and more. Let’s explore what these benefits mean for Backblaze and how they can be realized.
Overview of Backblaze
Backblaze is a cloud storage and backup provider headquartered in San Mateo, California. It offers unlimited storage subscriptions for businesses and consumer customers, and backup services that scale up to 8TB per device. Backblaze recently became a public company after completing its direct listing IPO on December 3, 2020.
Backblaze seeks to make data management automated, secure and cost-effective. The company’s products are designed to be used by individuals and enterprises, so they can experience the benefits of its cloud services. Benefits of Backblaze being a public company include greater visibility for the brand, increased access to capital for future growth initiatives, an incentive for innovation of products and services and heightened quality control standards as the business works with various stakeholders such as stockholders, partners and clients.
Additionally, deciding to go public opens opportunities for investors looking to participate in venture rounds or stock sales at advantageous terms. Finally, with increasing competition across the cloud storage space catering mainly towards enterprises, going public gives Backblaze greater access to resources it can use to continue developing its product offering while ensuring high-quality customer service.
Backblaze Is Now a Public Company
Backblaze, the cloud backup company, has recently gone public, now trading on the stock market. Being a public company can bring a variety of advantages, ranging from direct access to capital, increased mergers and acquisitions opportunities and greater transparency.
Look at some potential benefits of Backblaze’s recent move to a public company.
Increased Access to Capital
When a company is publicly traded on a stock exchange, it is easier to access larger amounts of capital for growth and expansion. Going public allows companies to raise money quickly and efficiently by selling small pieces of ownership known as equity shares. By issuing stocks, Backblaze will be able to grow more quickly and pursue more ambitious plans such as entering new markets or investing in R&D.
Additionally, when Backblaze was privately owned, the company could only accept a limited number of institutional investors. Going public opens up the potential investor base significantly; when companies go public, they can offer their shares to anyone who registers as an accredited investor with the applicable regulatory body or purchases them through secondary markets such as the New York Stock Exchange or Nasdaq. This broader investor base gives Backblaze greater access to capital, allowing them to grow faster and deliver even better products and services.
Improved Valuation
Backblaze’s recent move from private to public company status has resulted in several substantial benefits, including improved financial valuation and a more secure financial future. In addition, transitioning to a public company brings more transparency, liquidity and flexibility for future growth.
Public status gives Backblaze access to funds through limited time share offerings on the stock exchange. This infusion of additional resources can be used for new investments and acquisitions that private companies cannot access. In addition, agility in the marketplace can help Backblaze grow faster and increase their competitive advantage without compromising their brand values or end product quality.
Public listings also deliver improved company valuation, enabling them to better illustrate the progress they’ve made since their founding. New investors contribute capital that reflects their faith and trust in the product, which helps sustain growth trajectory beyond customer loyalty. The open market listing allows all investors, not just accredited ones, to invest directly into Backblaze as public shares become available for purchase when needed.
In addition, being a publicly listed company adds credibility in the market, allows Backblaze executives to represent their brand at conferences and major events with greater authority, improves international expansion opportunities due to regulatory compliance requirements being met more easily, and creates even stronger relationships with suitable strategic partners who are especially interested in working with publicly listed companies such as Backblaze.
Improved Brand Recognition
Being a public company can have many benefits, and one of them is improved brand recognition. Backblaze can access broader markets by going public and potentially gain visibility in more regions and countries. Additionally, improving the value of the company’s shares may lead to more potential investors and customers who could become aware of Backblaze as a result. There is also likely to be increased traffic to the company’s online presence due to heightened interest in their offerings.
Another benefit of being a public company is that it allows for greater access to capital. By becoming publicly traded, Backblaze gains access to additional funds for investment or expansion through issuing additional stocks or debt such as bonds or other securities. Improved liquidity also comes into play since now investors can easily sell their Backblaze stock versus having scarce liquidity when it was still privately owned with less demand for shares.
Finally, improved Acquisitions Get Easier with Public Companies is another advantage of having your business publicly listed on the stock market. When planning an acquisition they need to find sufficient existing stockholders willing to hand over their portion at the right price quickly which are easier conditions can be met by widely available public companies than privately held ones due to having better availability for large block transactions if needed. With wider access via listing on exchanges also leads to better choice of stocks for mergers & acquisitions (M&A).
Increased Transparency
One of the main benefits of Backblaze going public is increased transparency for both the company and its customers. By filing with the SEC, Backblaze makes all the financial information necessary to make an informed decision available. This includes customer base, management team composition, and current investor composition. In addition, the company must also provide any updates on major business decisions through press releases or SEC filings.
This increased transparency gives customers an insight into how their data is being used and handled and provides them with more confidence in the security measures Backblaze took. Additionally, new investors can make more informed decisions on whether to invest in the company due to information being readily available through SEC filings. Finally, constantly monitoring financial information by outside entities adds another layer of assurance that Backblaze stays compliant and follows best practices regarding data handling and customer expectations.
Conclusion
The move to become a public company marks a major milestone for Backblaze. Going public allows the company to access the capital markets, which could help fund future expansion and growth initiatives. Potential tax benefits could also help make the company more competitive long-term.
The move also allows existing shareholders of Backblaze to realize some of their built up equity through a sale or recapitalization. This can be an attractive proposition for early investors and founders who have been with the firm since its inception.
Going public also brings increased scrutiny from investors, analysts and regulators, so it is important that Backblaze is prepared for these developments. However, with its experienced management team and well-established reputation in cloud storage security, the company is primed to take on this challenge successfully.
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