Except as required by law, neither Gores Metropoulos II nor Sonder undertakes any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this release. Existing Sonder stockholders will retain 74% ownership in the pro forma company. The full filing with the amended merger agreement is here. We're a design company. SPAC The pandemic was such a black-swan event that now we are even more robust when it comes to down-side investment. 99.1 Sonder Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. We think the current online players are overly focused on capturing agents fees.. 2022. 310-209-3010 At a valuation of ~$2B and considering their estimated 2022 revenue, Sonder's revenue multiple would fall below the median multiple of upscale lodging companies like Hilton and Mariott, just above the median multiple of digital hospitality and real estate companies like Redfin and Tripadavisor, and below the median multiple of vertical disruptors like Uber, Doordash, and Airbnb. Three is demographics. Now, Sonder is joining a SPAC wave that's seen deals surge to record highs this year, though momentum has slowed in recent weeks. Sonder Investor Presentation (May 2022) The US$ 200 million PIPE investment is led by an affiliate of The Gores Group, with participation from top-tier institutional investors, including Fidelity Management & Research Company LLC, funds and accounts managed by BlackRock, Atreides Management, LP, entities affiliated with Moore Capital Management, Principal Global Investors, LLC, and Senator Investment Group. Sonder, the hospitality technology company, announced on Friday that it plans to go public via a SPAC deal with Gores Metropoulos II, a blank-check company sponsored by the private-equity firm The Gores Group and the billionaire Dean Metropoulos. Hospitality startup will reap $650 million, notches $2.2 billion valuation, Sonder co-founder Francis Davidson (Sonder, iStock). I think it's really important to underscore that we are a technology meets operations company. These forward-looking statements are based on Gores Metropoulos IIs or Sonders managements current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Special purpose acquisition companies are shells that raise funds through an IPO without underlying assets. His coverage is more complete than his moustache. SPAC Cash in Trust, US$ 450 million Managing Director WebReports & Presentations. The company scored a valuation of $2.2 billion in the deal and expects to reap $650 million in the offering, Reuters reported. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. The two clear takeaways are: (1) travel is rebounding and (2) Gores and Metropoulos arent worried about the impending regulatory crackdown on SPACs. Global Wealth Conferences - SWFI Event Series, Money Losing, Short Term Rental Platform Sonder Gets Saved by Gores SPAC. makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. Stay up to date with what you want to know. GoresGroup-SVC@sardverb.com, Internet Explorer presents a security risk. We improved unit economics by having landlords funding all of the investments required for a company to become a Sonder. 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.. The content and proprietary research found on this site, unless stated otherwise, has been entirely produced by Volt. Get research, business strategy, and tech analysis delivered to your inbox, Peter Thiel on Identifying Disruptive Companies: 10x Better than Competitors. The hospitality startup, which leases apartments and turns them into furnished, short-term rentals, announced plans to merge with a blank-check firm backed by SPAC pioneers Alec Gores and Dean Metropoulos. We're not cutting a check 90% of the time now when a property opens. As a company that came to prominence with short-term rentals, can you tell me more about your hotel business? We don't think it makes sense to spend several hundred dollars a night for a place to stay. Goldman Sachs & Co. LLC is serving as exclusive financial advisor to Sonder. Gores Metropoulos II was formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. Guesty, a property management startup targeting Airbnb hosts, raised $50 million last week. Sonders common shares are currently trading on the Nasdaq under the symbol SOND, at a price of $8.61 USD. Shares of Gores Metropoulos II rose 0.5% in afternoon trading on Friday. And in those cases, it's commonplace in the hospitality industry to have a reserve for capital improvements. 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. Sonder Sonder was founded in Montral in 2012 by Martin Pecard, Lucas Pellan, and Davidson under the name Flatbook. Unless otherwise noted, any performance returns presented in these materials reflect hypothetical performance. The company projects GAAP revenue, a standardized accounting measure, to increase from $116 million last year to almost $4 billion in 2025. Yet, their recent historical growth rate has been MUCH higher than the median of each of those industries. Download the Sonder app on Apple or Google Play. Sonder's evolving narrative (2019 Series D pitch deck vs. 2021 investor presentation) It's interesting to see how Sonder's narrative has evolved from when they Sonder will be scheduling a bell ringing ceremony with Nasdaq at a later date to formally celebrate its public listing. As part of the deal, Sonder will secure approximately $310 million USD in private investment in public equity (PIPE) capital and $165 million in delayed draw notes to support its new and existing growth initiatives. WebHis areas of focus include defining Sonders overall product strategy, maximizing the impact of tech investments and leading the delivery of product roadmaps. There's nothing like it. Other CEOs followed suit. It's a growing share for sure. Thank you! Opendoor Eric Wus total compensation was $370.2 million, with a base salary of $325,000. In this space you will find all of our financial reports, presentations, webcasts and relevant video material. Volt does not purport to provide any legal, tax, or accounting advice. Hypothetical strategies and indices presented are unmanaged, do not reflect any fees, expenses, transaction costs, commissions or taxes, and one cannot invest directly in any of these. 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. Porchs Matt Ehrlichmans total compensation was $16.8 million, with a base salary of $420,000. For Sonder: Weil, Gotshal & Manges LLP is serving as legal advisor to GM II. The Registration Statement, including the proxy statement/consent solicitation statement/prospectus contained therein, when it is declared effective by the SEC, will contain important information about the proposed Business Combination and the other matters to be voted upon at a meeting of Gores Metropoulos IIs stockholders to be held to approve the proposed Business Combination and other matters (the Special Meeting) and is not intended to provide the basis for any investment decision or any other decision in respect of such matters. Sonder is dependent on landlords to manage and maintain properties and maybe unable to negotiate attractive rates with new properties. As part of the SPAC deal, Sonder will retain its management team: Davidson will stay on as CEO, and Sanjay Banker will continue to serve as president and CFO. The brand generates $10 million per quarter, CoStar said. The way Sonder achieves this is through cutting out the fat in the hospitality industry through technology. We plan to have a multi-part series diving into Sonder's competition, strategy, leadership, and more. We could partner with independent hotel owners and figure out a way to say, "Hey, let's put our design capabilities in here to uplift the aesthetics of the property to attract our modern travelers. The Gores Group Concurrently with the consummation of the transaction, additional investors have committed to participate in the proposed business combination by purchasing shares of common stock of GM II in a private placement (the PIPE). For more investment insights, sign up for our email list below and subscribe to our YouTube channel. When used in this press release, the words estimates, projected, expects, anticipates, forecasts, plans, intends, believes, seeks, may, will, should, future, propose and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Were thrilled to have a committed and creative partner in Gores and the amendments, and incremental investment announced today will allow us to pursue our ambitious growth and expansion strategy in full force. RELATED: Sonder lowers valuation, expectations for SPAC deal amid market conditions. 333-251663), which was declared effective by the SEC on January 19, 2021. Its analytics can be used to ensure workers comply with safety standards; managers can use it to benchmark performance. Morgan Stanley & Co. LLC is serving as lead financial advisor and Deutsche Bank Securities Inc. and Citigroup are serving as capital markets advisors to Gores Metropoulos II. There's no product out there that is as high quality, consistent, affordable, and perfectly well set up to work while you're on the road. Click here to join the thousands of knowledgeable readers who subscribe to Future City. Get the latest news about hotels and short-term rentals delivered to your inbox once a week. Content is subject to change without notice. Forward-looking statements include information concerning Gores Metropoulos IIs or Sonders possible or assumed future results of operations, business strategies, debt levels, competitive position, industry environment, potential growth opportunities and the effects of regulation, including whether this proposed Business Combination will generate returns for stockholders. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. The goal has always been to go public as part of the path of achieving our overall goal: the mission of the business. In addition to the very compelling narrative and numbers presented in Sonder's investor presentation, Sonder's strategic advantage relative to both incumbents and potential new entrants makes us believe Sonder's stock has the ability generate over 1,000% return in the next 5 years. ir@sonder.com, For The Gores Group and affiliates: Sonder makes Nasdaq debut following close of SPAC deal April 19, 2023. The company initially sought to raise $650 million USD in cash proceeds at an enterprise value of $2.2 billion. 2022. We appear to be moving pastthe pandemic disruption. For more information, please visit www.gores.com. Any and all subjective claims and statements made on this site regarding companies or securities are strictly the beliefs and views held by Volt and are in no way meant to be an endorsement by Volt of any company or security and nor is it meant to be a recommendation by Volt to buy, sell, or hold any security.Past performance is no guarantee of future returns.