sonder spac investor presentation sonder spac investor presentation

Compass acquired digital closing startup Glide for an undisclosed sum. Company Profile. Wilson Sonsini Goodrich & Rosati, P.C. These risks, uncertainties, assumptions and other important factors include, but are not limited to: (a) the ability to recognize the anticipated benefits of the proposed business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain relationships with real estate owners and developers, guests and suppliers and retain its management and key employees; (b) changes in applicable laws or regulations, including legal or regulatory developments (such as changes in local laws affecting hotels, apartments and other accommodation and regulatory developments related to special purpose acquisition companies); (c) the possibility that Sonder may be adversely affected by other economic, business and/or competitive factors; (d) risks related to the impact of the COVID-19 pandemic, including the Omicron and other variants and potential governmental and other restrictions (including travel restrictions) resulting therefrom; and (e) other risks and uncertainties described in the final proxy statement/prospectus/consent solicitation statement, including those under the heading Risk Factors therein, and other documents filed by the Company from time to time with the SEC. Takeaway: Regarding the 3 dimensions of price, design, and quality consistency, Sonder introduces technology to drive down the price dimension, so that it can score top marks on all 3. Managing Director Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. We'll deliver the most current and interesting sovereign wealth and financial news straight to your inbox. Meaning, you can perform well in 2 dimensions but not in all 3. A key takeaway from todays news is that our ambitious growth and expansion strategy remains unchanged and should be fully-funded. San Francisco-based Sonder works with real estate developers, who build the properties that Sonder later operates under its brand name. Volt does not purport to provide any legal, tax, or accounting advice. Finsbury Glover Hering We spoke with Sonder's Francis Davidson about the deal and his outlook on the hospitality industry. Earlier this month, the firm said it would buy Homes.com for $156 million. Sonder will receive approximately $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Management & Research LLC, funds and accounts managed by BlackRock, Atreides Management, LP, and Senator Investment Group (the New PIPEs), in addition to the $200 million previously announced PIPE (the Existing PIPE). Gores Metropoulos II, Inc. (Nasdaq: GMIIU, GMII and GMIIW), a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Dean Metropoulos of Metropoulos & Co., announced that they have entered into a definitive agreement to combine with Sonder. Many services like the front desk, concierge, customer service, cleaning are replaced with their app. I think it's really important to underscore that we are a technology meets operations company. Investors should also understand that there is no guarantee that Volts investment strategies or decisions will prove to be profitable. Something went wrong while submitting the form. Plus, can SPAC investors take advantage of the big moves that are hidden in SPACs with announced deals? Sonder is revolutionizing hospitality through innovative, tech-enabled service and inspiring, thoughtfully designed accommodations combined into one seamless experience. One is the fact that our guests are much more leisure-oriented: 80% of our guests were leisure. In the next three to five years, we expect to be truly global with presence in Latin America and the Asia-Pacific region., RELATED: All signs point to Montral as home of Sonders second headquarters. Francis Davidson co-founded the company in 2014 while managing several apartments in Montreal as a university student. All quotes delayed a minimum of 15 minutes. We're talking about a cost structure that's roughly, on an operating-cost basis, up to 50% lower than traditional. Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. None of Volts proprietary content may be reproduced or referenced, in full or in part, in any other publication without the expressed written consent of Volt. Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. jchou@gores.com, John Christiansen/Cassandra Bujarski/Kate Gorgi In the markets that we're in we're talking about substantial investments into those local economies either through our partners or with the employees that we have on the ground. And it's typical for the landlord to fund it. The startups early investors include BDC Capital, Spark Capital, Thayer Ventures, ScaleUP Ventures, and Real Ventures. The deal will give Sonder $650 million in cash to scale up. Media Contacts Wu only took $189,584, however, voluntarily donating the rest to a company relief fund for affected employees. 2019, US$ 178.767 million (LOSS). In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.While an option overlay is intended to improve performance, there is no guarantee that it will do so. For more investment insights, sign up for our email list below and subscribe to our YouTube channel. The company previously raised more than $560 million and is backed by investors The business was heavily impacted when the global pandemic brought the travel industry to a halt last year, but has rebounded as it targets millennial leisure travelers, said Chief Executive and co-founder Francis Davidson. Gores Metropoulos II, Inc. (Nasdaq: GMII, GMIIW, and GMIIU) is a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, a global investment firm founded in 1987 by Alec Gores, and by an affiliate of Metropoulos & Co. whose Principals are Dean, Evan and Daren Metropoulos. The idea is that Sonder is not a short-term-rental company. We think that the combination of this incremental capital and our proactive response to changing market dynamics will put us in the best position to drive long-term value creation for our shareholders and employees., Alec Gores, the buyout sponsor of the deal, told New York Times that the market has shifted and we totally get that[a]s long as you have a great company, the market is going to go in 100 different ways, and we just have to be smart enough to recognize where the market is.. Oops! Let's find people who need to relocate. WebCombination with Gores Metropoulos II . San Franciscos short-term rental startupSonder has lowered its going-public-through-SPAC valuation down to $1.925 billion from the earlier planned $2.2 billion, as market conditions change and SPACs face more headwind. u2014 CoStar CEO Andy Florance. "I think you can view us as a next-generation Marriott," Davidson said, adding that Sonder partners with companies including Expedia Group Inc (EXPE.O), Airbnb Inc (ABNB.O) and Booking.com to reach out to customers. Equipping the balance sheet with hundreds of millions of dollars through this transaction allows us to do that in a way that is super financially sound and finances a plan that can bring really rapid growth and investments in technology we think are really going to pay off big time. Instantly search thousands of Decks by world-leading companies on Slidebook SPAC December 2016 Despegar Mergers and Acquisitions Sonder Start Up January 2019 Related decks Tripadvisor Investor Gores Metropoulos II, Sonder and their respective directors and officers may be deemed participants in the solicitation of proxies of Company stockholders in connection with the proposed Business Combination. Francis Davidson, Sonders co-founder and CEO, called the listing a historic moment for the company, adding that it is a testament to how weve revolutionized the hospitality industry by reimagining and delivering what the modern traveler demands.. It claims the platform also placed $7.7 billion in title insurance and $1.4 billion in homeowners insurance. It's early to say how large that demographic is going to be in the years to come, when the world is reopened and offices are reopened, but it's going to be more than what it was before the pandemic. Zonda acquired BuzzBuzzHome, a new development listing site, for an undisclosed sum. Messrs. Gores and Metropoulos together have over 100 years of combined experience as entrepreneurs, operators and investors across diverse sectors including industrials, technology, media and entertainment, business services, healthcare and consumer products and services. It operates over 300 properties in 35 markets, with plans to invest in tech, expand to news regions, and sign more properties. Sonders SPAC deal was first announced in April 2021. Let's also plug in our technology and modernize this hotel so that the customer experience can be improved and the cost structure can go down.". Investors should be aware of the inherent risks involved in investing in the markets and that past performance is not an indication of future results. Additional information about the proposed Business Combination, including a copy of Amendment No. We should be conservative.". According to Sonders presentation, the company had 2,000 live units in 2018, 5,000 live units in 2019, and 4,565 live units in 2020. British Land, the U.K.s largest REIT, sold its property management platform to Australia-based Equiem. On the other side is our expansion into the hotel business. Can you talk me through your decision to go public? Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all. To learn more, visit www.sonder.com or follow Sonder on Facebook, Twitter or Instagram. Utilizing an option overlay strategy involves the risk that as the buyer of a put or call option, the buyer risks losing the entire premium invested in the option if the buyer does not exercise the option. With property level profit margins going from (54%) in 2020 to 32% in 2025. Gores Metropoulos II raised $450 million in a January IPO, and raised an additional $200 million from PIPE investors, including BlackRock, Fidelity and Senator Investment Group. The CEOs of Opendoor and Porch saw hefty stock and options in a year when both companies went public. Mr. Davidson will continue to serve as Co-Founder and CEO and Mr. Banker will continue to serve as President and CFO. The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. 2012-2023 BetaKit Incorporated. Volt does not seek to solicit or offer any of its products or services to any persons to whom doing so would otherwise be prohibited under the laws applicable to their place of citizenship, domicile or residence.Some of the content on this site may contain forward-looking statements, including but not limited to statements related to future expectations, based on Volts current outlook and assumptions. 2021. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. The De-SPAC Index, which tracks 25 such companies, is down 28% in 2022. GAAP Revenue Last year, Sonder reached a valuation of $1.3 billion after a funding round. Although the travel sector still faces strong headwinds due to COVID-19, Davidson said the company remains aggressively optimistic on the future of travel, citing Sonders record Q2 and Q3 2021 performance as evidence of the resiliency of its business. Highlights from the presentation are below. And when that happens if you're building a building where every unit is $500,000, spending an extra $10,000 to bring it up to Sonder standard it's easy to show the owner the benefits we bring to the table. Also, Sonder has access to $220 million debt facility with existing PIPE investors, to be available following the closing of the merger, which Sonder says will be enough to fund its growth over the next several years. The SPAC merger also includes a $200 million PIPE investment from Fidelity and funds managed by BlackRock and other firms. Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all. The proposed business combination remains on track to close in the second half of 2021, subject to approval by Gores Metropoulos IIs stockholders and other customary closing conditions. Sonder also expects to have approximately $310 million in private investment in public equity (PIPe) proceeds, up to $450 million in cash in Gores Metropoulos II's trust account and $165 million of delayed draw notes to fund operations and support new and existing growth initiatives. Click here to join the thousands of knowledgeable readers who subscribe to Future City. We really skew toward Gen Z and millennials, where there's an expectation that these categories will come back. 1)) and the proposed Business Combination contemplated thereby; (b) the inability to complete the proposed Business Combination due to the failure to obtain approval of the stockholders of Gores Metropoulos II or other conditions to closing in the Merger Agreement (as amended by Amendment No. It operates over 300 properties in 35 markets, with plans to invest in tech, expand Sonder. We've always built a really financially diligent company, but we took this to the next level. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. However known and unknown risks and uncertainties may cause actual results to materially differ from what is expressed in such statements. 2021, Volt Equity (Volt). is serving as legal advisor to Sonder. Your submission has been received! The deal would value Sonder at $2.2 billion, almost $1 billion more than its June valuation of $1.3 billion, and includes $650 million in total cash proceeds. 0001819395-23-000056.pdf. served as legal advisor to Sonder. But Sonder is able to score well on all 3 dimensions. See here for a complete list of exchanges and delays. These amendments and associated incremental investments by leading institutional investors to adapt to current market conditions strongly position Sonder for long-term growth, and underscore Sonders and Gores Metropoulos IIs collective commitment to driving long-term value creation for all stockholders. Investing involves risk and possible loss of principal capital. Gores Metropoulos II stockholders will also be able to obtain copies of the definitive proxy statement/consent solicitation statement/prospectus, without charge, once available, at the SECs website at www.sec.gov or by directing a request to: 6260 Lookout Road, Boulder, CO 80301, attention: Jennifer Kwon Chou, or by contacting Morrow Sodali LLC, the Companys proxy solicitor, for help, toll-free at (800) 662-5200 (banks and brokers can call collect at (203) 658-9400). In this space you will find all of our financial reports, presentations, webcasts and relevant video material. SAN FRANCISCO & LOS ANGELES-- ( BUSINESS WIRE )--Sonder Holdings Inc. (Sonder'' or the Company), a leading next-generation hospitality Wilson Sonsini Goodrich & Rosati, P.C. Your goal is to grow quite rapidly and become a leading force in hospitality. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Sonders managements control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Mitsubishi UFJ to sell SF office building at expected 80% discount, Miami luxury real estate agent pleads guilty in PPP fraud case, Sonder to open in Flatiron Hotel next month. In 2020, Sonder says they have 4,565 units. Starting from right to left: Usually a lodging provider would need to make a trade-off in terms of these 3 dimensions of price, design, quality consistency. As part of the amended terms of the transaction, the combined companys implied pro forma enterprise value will be $1.925 billion. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. It proved to be really successful: We managed to bring occupancy rates back to pre-pandemic levels quite rapidly. That said there are some positives in the newly restructured deal between the two parties: Sonder will get an $110 million in additional capital from affiliates of Gores Metropoulos II and other leading investors, including Fidelity Management and others, in addition to the $200 million previously announced PIPE. Goldman Sachs & Co. LLC served as exclusive financial advisor to Sonder. Subject to any redemptions by the public stockholders of Gores Metropoulos II and the payment of transaction expenses at the closing, the $200 million in Existing PIPE proceeds and approximately $110 million in proceeds from the New PIPEs will be used together with up to $450 million in cash in Gores Metropoulos IIs trust account and Delayed Draw Notes of $220 million to fund operations and support new and existing growth initiatives. The Registration Statement is not yet effective. San Francisco-based Sonder Holdings Inc. (Sonder) officially launched in 2014 and was co-founded by Francis Davidson, Chief Executive Officer, and Martin Picard, Global Head of Real Estate. Overview | Sonder Holdings Inc. Investor Relations Resources & Information Company Overview Sonder is revolutionizing hospitality through innovative, EBITDA margin going from (181%) in 2020 to 16% in 2025. We hire and we invest heavily into the communities in which we operate. A year ago, Redfin CEO Glenn Kelman said he would forgo a salary after the tech brokerage had to furlough 40 percent of agents and staff. Placer operates on a subscription model, and Ben-Zvi said it tripled its revenue in 2020 as customers sought data to guide decisions during the pandemic. Sonder continues to generate impressive results amid the ongoing recovery of the travel industry and is well positioned for future growth given their unique value proposition. The landlord is funding it. It's joining others in the real-estate tech world, such as WeWork, iBuyer Opendoor, and property-management technology company SmartRent. Get research, business strategy, and tech analysis delivered to your inbox. All this allows them to cut down on operating costs by as much as ~50%. However, in October, the firm scaled down its valuation to $1.9 billion in light of market conditions. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. As a part of its push into the residential sector, CoStar recently acquired Homesnap for $250 million. There are a lot of organizations that put out forecasts, like Smith Travel Research and CBRE. 2021, Volt Equity (Volt). Web10. Forward-looking statements in this release include, but are not limited to, the closing of the drawdown on Sonders Delayed Draw Notes, the commencement of trading of Sonders common stock and publicly traded warrants on Nasdaq, Sonders beliefs regarding its current and future financial position, Sonders beliefs regarding its future financial and operating results and growth and the effect of the COVID-19 pandemic, its timing of recovery and the pandemics impact to Sonders business and financial position.