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All value has been extracted by VC before the IPO. All the IPO does is dump the stock on institutions and retail investors.
by downrightmike 1y ago
All value has been extracted by VC before the IPO. All the IPO does is dump the stock on institutions and retail investors.
- asah 1y agoum, perhaps it's worth reviewing the stock charts for MAANG whose early investors extracted a tiny % of the their total marketcaps. The subtlety is that you can buy shares on the open market post-IPO, so when you buy "pre-IPO" you're just getting the one-time "pop."
- el_nahual 1y agoThis is trivially proven false, at least as a generalization. Looking at recent-ish IPOs: Spotify: up 380% since IPO Service Now: 4,000% Shopify: 685% Meta: 1,600%
- candiddevmike 1y agoThere are at least 150-250 IPOs every year, good luck picking winners like those four.
- FreakLegion 1y agoIf https://site.warrington.ufl.edu/ritter/files/IPOs-VC-backed.pdf https://site.warrington.ufl.edu/ritter/files/IPOs-VC-backed.... is right, the last time there were 150+ tech IPOs in a year was 2000 (1992-2000 were all anomalously high). 2021 is the only year to break 100 since then, and only three other years cracked 50.