A number of Silicon Valley investors are starting the long weekend with a smile. That’s thanks to Xoom Corporation, the online money transfer technology and services company, which made a very successful debut today on the NASDAQ stock market.
The company’s stock zoomed (sorry, I had to do it) up a full 59 percent from its $16 per share initial public offering price to close out the trading day at $25.49. The IPO price itself, announced yesterday, was a boost from Xoom’s previously projected share price range of $13 to $15.
Xoom collected $101.2 million in proceeds from the offering, which it says it will use for the standard things — business growth and M&A. It’s a nice turnout for Xoom and its venture capital investors, who include Sequoia Capital, New Enterprise Associates, Agilus Ventures, and DAG Ventures, among others. The company collected $80 million in annual revenue in 2012, according to its IPO filing.
Xoom, which was founded in 2001 and has raised a total of $78 million in outside investment, has never been the “sexiest” of companies and has flown under the radar a bit from a press perspective — perhaps that’s because its product is finance-based and not consumer facing. But it has amassed support from a some of the most prominent names in the tech industry and particularly the online payment space, counting two PayPal alums — Sequoia Capital partner Roelof Botha and former Square and Slide exec Keith Rabois — as board members. Also on the board is Xoom’s founding CEO Kevin Hartz, who handed over the reins of the company to current CEO John Kunze in October 2005 to serve as co-founder and CEO at Eventbrite.
It just goes to show once again that for all the buzz in recent years about consumer-facing startups, when it’s all said and done, some of the biggest success stories of the current tech boom may be lower profile companies with an enterprise bent.