In the midst of a pandemic, there are still big events happening that call for cheers. Bumble’s CEO and billionaire Whitney Wolfe Herd is the youngest female to take a company public. If you are an early employee or an investor who believed in Ms. Herd’s mission early on you could be in for a real treat if you received stock options or own stock in the Company. Your Bumble stock may qualify for the 100% QSBS tax exclusion on the sale of your stock.
Bumble went public on February 11, 2021, with a valuation of $8.2 billion. The IPO price was $43.00 and the adjusted closing price the day of the IPO was $70.55.
One factor we are sure of is the Company was incorporated in 2014; therefore, if you are a stockholder you could qualify for 100% in tax savings. Check out a few other details we have already hashed out for you below:
Description: Bumble is an app that provides a location for people to find dates, friends, or build careers in a centralized social networking platform.
Incorporation Date: December 2014 as a C Corporation, which is a qualified legal entity for QSBS
Liquidation event details (date, type, etc.): The Company’s early-stage financing is not publicly available, but the Company recently raised $2.15 billion in its IPO.
QSBS Potential: The Company is a technology-based social networking platform, which is a qualified QSBS industry. The Company was founded after 2010; therefore employees and early investors could qualify for the 100% QSBS exclusion. It is unknown when the Company went over the $50 million asset test. There is a strong likelihood that any stock issued in 2014 could qualify for QSBS, assuming no redemptions and the Company meets the active test.
If you obtained shares in Bumble in 2014 or later, please contact us to evaluate your potential QSBS eligibility.
This article does not constitute legal or tax advice. Please consult with your legal or tax advisor with respect to your particular circumstance.