Form 4: Raine Group Entities Acquire 1.4 Million Shares of Olo Inc. Class A Common Stock Through Conversion

Raine Group and affiliated entities report the acquisition of 1,400,000 shares of Olo Inc. Class A Common Stock following the conversion of Class B Common Stock.

Summary

• RPII Order LLC, along with affiliated entities including Raine Partners II LP, Raine Associates II LP, Raine Management LLC, The Raine Group LLC, Raine Holdings LLC, and Raine Capital LLC, reported changes in beneficial ownership of Olo Inc. securities.
• On July 16, 2024, RPII Order LLC acquired 1,400,000 shares of Class A Common Stock through conversion at a price of $0 per share.
• The conversion also involved 1,400,000 shares of Class B Common Stock.
• Following the transaction, RPII Order LLC directly holds 1,400,000 shares of Class A Common Stock and indirectly holds 30,820,439 shares.
• The reporting persons disclaim beneficial ownership of shares held by Brandon Gardner and Colin Neville, members of the Board, except to the extent of their pecuniary interest.
• The reporting persons also disclaim beneficial ownership over shares held by Raine Associates except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral. It's a standard transaction related to stock conversion and reporting requirements. There's no indication of positive or negative implications for the company's performance.

Positives

• The acquisition of 1,400,000 shares of Class A Common Stock through conversion indicates a continued investment in Olo Inc. by Raine Group and affiliated entities.

Industry Context

This filing reflects changes in ownership structure by a major investor, Raine Group, which is common in the technology and restaurant technology sectors. Such transactions can influence investor sentiment and potentially impact stock valuation.

Comparison to Industry Standards

• Similar transactions are often seen with other venture capital and private equity firms holding significant stakes in publicly traded companies, such as Tiger Global's investments in various tech firms or SoftBank's holdings in the technology sector.
• The conversion of Class B shares to Class A shares is a common mechanism used to simplify capital structures and provide liquidity to early investors, similar to what was observed in the early stages of companies like Facebook (Meta) and Google (Alphabet).

Stakeholder Impact

• The conversion of shares could potentially increase the float of Class A shares, which might have a minor impact on liquidity for shareholders.
• Employees holding stock options or equity may see this as a positive sign of continued investor confidence.

Key Dates