Chicago technology company Sprout Social filed paperwork to go public and raise $100 million.
Sprout Social, founded in 2010, makes software platforms for companies to manage social media, and makes money mainly from subscriptions to that software. The company has 23,000 customers around the world and has seen consistent revenue growth, but has yet to turn a profit.
In its IPO paperwork, filed with the Securities and Exchange Commission Friday, Sprout Social said it incurred a net loss of $21 million for the nine months ending Sept. 30, up from a net loss of $17 million over the same period in 2018.
"We have never achieved profitability on an annual or quarterly basis and we do not know if we will be able to achieve or sustain profitability," the document says.
If Sprout Social goes through with its public offering, it could be a win for Chicago's tech sector.
Groupon is one of the highest profile tech companies out of Chicago to go public in the last decade. The company debuted on the Nasdaq at $28 a share in November 2011. The IPO valued Groupon at $16 billion, but the stock price never again rose to those initial heights.
Sprout Social has raised $111.5 million in capital, according to Crunchbase, which tracks venture funding. Investors include Goldman Sachs, New Enterprise Associates, and Lightbank, the Chicago-based venture capital firm started by Eric Lefkofsky and Brad Keywell, two of Groupon's co-founders.
A representative from the company declined to comment. Sprout Social surpassed 500 employees last year, according to the IPO document.
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