Fidelity Investments, a Boston-based asset manager, has written down its investment in Vancouver’s Hootsuite by 18%, Bloomberg has reported.
Fidelity led a US$60 million financing round in Hootsuite in September 2014, which also included the participation of Accel Partners, Insight Venture Partners, OMERS Ventures and Silicon Valley Bank. At the time of this investment, Hootsuite’s valuation was estimated to be around US$800 million, and that round brought the value of the company’s total financing to US$250 million.
When rumours of Fidelity’s interest in the company first surfaced, it brought about speculation of Hootsuite going public – something that never came to fruition.
Hootsuite, which first launched in 2008, laid off 20 employees in its Vancouver offices in December, which the company said was part of a global reorganization. At that time, it said it planned to hire 100 people in 2016 as part of this restructuring.
A representative of Fidelity Investments told Business in Vancouver it was unable to comment on individual companies.
@EmmaHampelBIV
