Wednesday, February 28, 2018

Wavemaker Portfolio Firm, Phunware, Goes Public Via Reverse Merger

Los Angeles-based venture investor Wavemaker Partners has seen one of its portfolio companies hit the public markets, albeit via an unusual, reverse merger arrangement. According to Phunware, a developer of mobile application lifecycle management software, it has been acquired by Stellar Acquisition II, which is listed on the NASDAQ Stock Market. Stellar is a so-called "blank check acquisition company" specifically designed to for reverse mergers. As a result of the merger, Stellar is renaming itself as Phunware, Inc., and will start trading under the new stock symbols PHUN and PHUNw. The two said the acquisition values Phunware at an enterprise value of $301M. Phunware, based in Austin, Texas, is backed by Wavemaker Partners (Draper Network Fund), Fraser McCombs Ventures, Maxima Ventures, Samsung, Cisco Investments, World Wrestling Entertainment, PLDT Capital, Central Texas Angel Network (CTAN), Baylor Angel Network (BAN) and others.

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