Uber has hired Goldman Sachs to raise money from the bank’s high-net-worth clients, reports Fortune’s Dan Primack.
Primack reports that Goldman began sending information packets on Uber to its wealth management clients this morning, and that the bank could raise “hundreds of millions of dollars to support Uber’s balance sheet and international expansion efforts.”
The securities being offered by Goldman to clients are structured as convertible debt, Primack reports.
Primack’s report follows a report from Bloomberg last week that said Uber was close to raising a new round of funding that would value the company at $US35-$US40 billion.
That raise was reported to include investments from companies including T. Rowe Price.
Primack’s report also said that it isn’t clear what Goldman’s clients are being told, given that a convertible debt offering is an odd choice for a company that doesn’t trade on a secondary market nor is it promising to go to public.
But regardless of Uber’s ambitions with regard to taking its company public, the company’s growth trajectory is impressive.
Earlier this month, Business Insider’s Henry Blodget, citing a source familiar with the company’s financial performance, reported that Uber’s revenue is expected to hit an annual run rate of $US10 billion next year. In other words, Uber is expected to have a quarter in which it brings in $US2.5 billion in revenue by the end of next year.
And while reports have circulated in recent months about the company in talks to raise money, Uber’s last confirmed capital raise put the company’s valuation at $US17 billion, about half of the current figure being discussed now.