Porch valuation soars to $1B after IPO

After merging with a blank-check company, Porch.com is now a billion-dollar company.

The home-services startup made its stock market debut on Nasdaq, with shares opening at $15.37.

The company’s merger with PropTech Acquisition Corp. closed on Wednesday, 12/23. The special-purpose acquisition company was formed last year by Thomas Hennessy and Joseph Beck, former Abu Dhabi Investment Authority execs. After trading around $10 per share for several months, the SPAC’s stock jumped nearly 25 percent after shareholders approved the Porch merger on Dec. 21.

Prior to the IPO, Porch had raised $120 million from investors including Valor Equity Partners, Lowe’s Cos., Founders Fund and Battery Ventures.

Porch hopes to generate up to $500 million in revenue in five to seven years by growing its core business.

The company said it received $322 million in gross proceeds from the IPO, including a $150 million investment led by Wellington Management. Other investors include Scopus Asset Management and Steve Cohen’s Point72 Asset Management, which acquired a 6.4 percent stake that’s now valued at $17 million.