Form 4: Summit Partners Sells 305,638 Shares of Klaviyo (KVYO) Stock

Summit Partners L.P. and affiliated entities sold 305,638 shares of Klaviyo, Inc. (KVYO) Series A Common Stock at a price of $32.33 on August 23, 2024.

Summary

• On August 23, 2024, Summit Partners L.P., along with affiliated entities including Summit Partners Growth Equity Fund IX-A, L.P., Summit Partners Growth Equity Fund IX-B, L.P., Summit Partners Co-Invest (Kiwi), L.P., SUMMIT INVESTORS GE IX/VC IV, LLC, and SUMMIT INVESTORS GE IX/VC IV (UK), L.P., sold 305,638 shares of Klaviyo, Inc.'s Series A Common Stock.
• The transaction was executed at a price of $32.33 per share.
• The shares sold were converted from Series B Common Stock to Series A Common Stock upon the execution of the sale.
• Following the reported transaction, the reporting persons continue to beneficially own 46,861,139 shares of Series B Common Stock through various funds.
• The Series B Common Stock is convertible into Series A Common Stock at any time at the holder's election and will automatically convert under certain conditions, including a date specified by 66-2/3% of the outstanding shares of Series B Common Stock, the seventh anniversary of Klaviyo's IPO, or certain transfers.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating a sale of shares by a major holder. It's a neutral event, not inherently positive or negative, but could be interpreted in different ways by the market depending on the context.

Industry Context

This transaction represents a partial liquidation of Summit Partners' holdings in Klaviyo, which is a common occurrence for venture capital and private equity firms after a company's IPO. The sale could be part of a broader strategy to realize gains from their investment.

Comparison to Industry Standards

• Venture capital firms like Summit Partners typically have lock-up periods after an IPO, after which they may begin to sell shares.
• The size and timing of these sales are often dictated by market conditions and the fund's investment strategy.
• Comparable firms like Accel, Sequoia Capital, and Andreessen Horowitz also periodically reduce their holdings in portfolio companies after they go public.

Stakeholder Impact

• The sale of shares by a major holder like Summit Partners could create short-term selling pressure on Klaviyo's stock.
• However, it could also improve the stock's liquidity and potentially broaden its investor base.

Key Dates