Food delivery app DoorDash is going public, and if all goes according to plan, its CEO Tony Xu and two other cofounders will all become billionaires.
The 36-year-old Tony Xu is leading the delivery app’s push for an initial public offering likely before year-end that would boost his net worth to just over $1 billion with shares at the low end of its targeted IPO price range.
DoorDash cofounder and CEO Tony Xu is the son of Chinese immigrants who supported their family by working in restaurants. (Photo by Noam Galai/Getty Images for TechCrunch)
According to a filing made public Monday, DoorDash plans to list 33 million shares, at a price range between $75 to $85 per share. Xu owns 4.6% of the delivery giant while cofounders Andy Fang, 28, and Stanley Tang, 27, each own 4.2%. A fourth cofounder, Evan Moore, now a partner at Khosla Ventures, is not listed on the filing.
After a June funding round saw investors pour another $400 million into the business, DoorDash was valued at $16 billion. The proposed IPO pricing values the business at between $23 billion and $32 billion.
“As an entrepreneur,” Xu told the LA Times in 2018, “every day, every year, there are things that will make you increasingly uncomfortable. If you’re willing to bear that uncertainty, I think you’ll find a lot of rewards and satisfaction from it. Typically, it’s when you experience discomfort that you grow.”
DoorDash is backed by SoftBank Vision Fund, venture capital firm Sequoia and the private equity arm of the Singapore