Apprehensive Waymo IPO: $2.5B Outside Funding In Its 1st Round For Leader in The Unicorn Clubhous

SOILER ALERT FOR LOCAL HYPE=PROMOTERSWaymo is said to be costing Alphabet nearly $1 billion and is only bringing in a paltry amount of revenue from its limited commercial robot taxi service in the suburbs of Phoenix." The BFD

Illustration: Sarah Grillo/Axios

Waymo, the self-driving unit of Alphabet, raised $2.25 billion in its first round of outside funding. Why it's the BFD: Self-driving is the venture market's most capital-intensive gold rush since cleantech manufacturing, and Waymo is now a leader in the unicorn clubhouse. But even this vote of confidence comes with some apprehension, as Waymo reportedly began fundraising a year ago. Investors: Silver Lake, CPPIB, and Mubadala Investment Co. co-led, and were joined by Alphabet, Andreessen Horowitz, AutoNation, and Magna International. Notably absent were any automakers (at least so far, as Waymo positioned this as a first close). The bottom line: "The announcement is sure to be welcome news to Waymo’s and Alphabet’s respective financial teams, which are charged with keeping the cash-intensive operation afloat. Waymo is said to be costing Alphabet nearly $1 billion and is only bringing in a paltry amount of revenue from its limited commercial robot taxi service in the suburbs of Phoenix." — Andrew Hawkins, The Verge