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I agree - It isn't specific to YC IPOs - it applies to all IPOs. I think the point is that YC perhaps is a good early stage VC in maximizing the IPO price for
by somethoughts 4y ago
I agree - It isn't specific to YC IPOs - it applies to all IPOs.
I think the point is that YC perhaps is a good early stage VC in maximizing the IPO price for the benefit of LPs and founders and unloading at the right time onto the market.
Perhaps its less clear given the current state of things whether their companies are good for long term earnings performance for long term ownership by retail investors.
- dntrkv 4y agoIt's not just IPOs, the whole market is experiencing a correction. We're way overdue for one anyway.
- somethoughts 4y agoIts relative - high PE, high growth multiple stocks (such as YC IPOs) have generally been reverting to mean. Most stocks that were already at the mean w.r.t. PE are still sticking to the mean with flat earnings. What needed correcting is getting corrected. What was correct is staying correct. The rise in interest rates means that companies that have been producing their own cash can fund growth initiatives internally. Companies who were funding growth initiatives using outside capital (debt, VC investment) are now going to be paying 10%+ to do so.