Form 4: Bessemer Venture Partners Funds Convert and Sell Toast (TOST) Shares

Bessemer Venture Partners funds converted Class B Common Stock to Class A Common Stock and sold shares of Toast, Inc. (TOST) on September 12 and 13, 2024.

Summary

• On September 12, 2024, Bessemer Venture Partners IX, L.P. ('Bessemer IX'), Bessemer Venture Partners IX Institutional, L.P. ('Bessemer Institutional'), Bessemer Venture Partners Century Fund L.P. ('Bessemer Century'), and Bessemer Venture Partners Century Fund Institutional L.P. ('Bessemer Century Institutional') converted shares of Class B Common Stock to Class A Common Stock.
• The same entities then sold shares of Class A Common Stock on September 12 and 13, 2024.
• The sales occurred at weighted average prices of $26.08 on September 12 and $26.22 on September 13.
• Kent Bennett, a partner at Bessemer Venture Partners, has an indirect interest in the shares held by the Bessemer IX Funds and the Bessemer Century Funds.
• Following these transactions, the Bessemer entities still hold significant amounts of Class B Common Stock.

Sentiment

Score: 5

Explanation: The document itself is neutral, simply reporting transactions. The sales by Bessemer could be seen as slightly negative, but are a normal part of the VC lifecycle.

Risks

• Large sales by major shareholders like Bessemer Venture Partners could create downward pressure on the stock price of Toast, Inc.

Industry Context

Venture capital firms often distribute shares of publicly listed companies to their limited partners or sell shares on the open market after a lock-up period expires. This is a normal part of the venture capital lifecycle.

Comparison to Industry Standards

• The share sales are typical for venture capital firms after a company goes public.
• Similar sales have been observed with other companies backed by venture capital firms like Snowflake (SNOW) and Datadog (DDOG) after their IPOs.

Stakeholder Impact

• Shareholders may experience short-term price fluctuations due to the share sales.
• The sales provide liquidity to Bessemer Venture Partners.

Key Dates