Confluent: NASDAQ IPO
Confluent is a leading technology company founded by the developers of the open-source Apache Kafka project, which has become the industry standard for real-time data streaming. Confluent's products enable companies to connect services to continuous data streams, analyze them in real-time, and make more informed business decisions.
Essentially, Confluent serves as the "central nervous system" of business operations, facilitating data processing and transmission between critical processes.
Use Cases
Financial Services: Processing quotes and transactions (Robinhood, Goldman Sachs, Bloomberg)
Manufacturing: Predictive equipment maintenance (Tesla, BMW, Bosch)
Transportation: Dynamic ride pricing (Uber, Lyft)
Entertainment: Personalized content recommendations (Netflix)
This broad range of applications makes Confluent's solutions highly sought after across diverse industries and enhances business resilience against market volatility.
Our Investment in Confluent
In March 2021, Axevil Capital acquired Confluent shares on the secondary market from one of the company's senior executives in partnership with Finsight VC. At that time, Confluent had already filed a confidential IPO application.
In summer 2021, the company successfully completed its NASDAQ listing. The IPO was met with strong investor demand.
Why We Believed in Confluent
At the time of investment, the company demonstrated strong performance metrics and strategic advantages:
Revenue: $300M in 2020 with 60% YoY growth; 2021 forecast: +50%
Gross Margin: Over 70%
Customer Base: 500+ companies with $100K+ ARR
Financial Position: $300M cash on balance sheet
Investors: Sequoia, Benchmark, Index Ventures
Partnerships: Strategic collaboration with Microsoft
These factors confirmed strong product-market fit and the company's ability to scale effectively. Integration of Confluent's solutions into major corporations' workflows created long-term customer relationships and established high competitive barriers.
Confluent's IPO became one of the notable events on NASDAQ in 2021. This case represents Axevil Capital's first successful exit and exemplifies our strategy of working with promising technology companies in late-stage development.
