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An IPO during that time would certainly help stock holders get liquid but it wouldn't help the business given that Banks/Firms were making a killing on the IPOs
by rubiquity 4y ago
An IPO during that time would certainly help stock holders get liquid but it wouldn't help the business given that Banks/Firms were making a killing on the IPOs of that era by disastrously mispricing the businesses. There's a lot of business that still needs to happen after an IPO and an IPO in and of itself is not the goal. If you're running a solid business like Stripe during turbulent times keeping your options open is a good idea. We haven't seen how the IPO fest of 2020-2021 is going to work out for some of those companies if they get cash strapped.
- hgsgm 4y agoThe IPOs were overpriced, which is great for sellers.
- rubiquity 4y agoWhich won't be the employees for 180 days.
- satvikpendem 4y agoEven counting the lock up, prices were still higher then than now.
- ergocoder 4y agoStripe likely would have gone direct listing which would have no lock up.
- peanuty1 4y agoIf Stripe went public via IPO between Sep 2020 and March 2021 (like so many other pre-IPO tech companies of a similar maturity as Stripe such as Snowflake, DoorDash, Airbnb, Unity, Roblox, Palantir, etc), their employees would still presumably be able to sell their RSUs at a $100B+ market cap after the 180-day lockup period as tech companies in the payments space like Adyen and Square only started to see their shares plummet from their peak in November 2021. And if Stripe went public via direct listing like Slack and Coinbase, their employees wouldn't have a lockup period.
- fastball 4y agoIs Stripe running a solid business? I was under the impression they are not profitable.