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Why ask for IPO to dillute the effective investor pool if you are already making a ton of money consistently?
by rf15 8mo ago
Why ask for IPO to dillute the effective investor pool if you are already making a ton of money consistently?
- fourseventy 8mo agoTo give liquidity to investors.
- Cyph0n 8mo agoDon’t they already get to participate in secondary markets to liquidate?
- onion2k 8mo agoThe cost of that liquidity is missing out on realizing future growth though. It's fairly safe to assume that as there isn't an IPO yet the investors want to hold rather than cash in returns. They probably believe there's more growth potential, and that the board are the right people to deliver it.
- KK7NIL 8mo ago> The cost of that liquidity is missing out on realizing future growth though. Why would it be? I don't believe an IPO has to be dilutive, it can be done with already issued shares. I grant you that's not usually how they're done though.
- 303space 8mo agoIf you bought Stripe at a 95b valuation in 2021 your returns are barely keeping up with the SP500 after this latest round. Not exactly an elite capital growth machine.
- j45 8mo agoPerhaps infrastructure has a different kind of long term upside.
- YetAnotherNick 8mo agoYou forgot to mention its valuation grew by 2.6x in the previous 3 months. 2021 was different thing altogether with the money printing.
- skybrian 8mo agoEven for good investments, investors will want to sell at some point rather than owning an investment forever, if only to diversify.
- onion2k 8mo agoSure, at some point. Maybe that isn't now though.
- j45 8mo agoMaybe certain types of growth aren't the goal for Stripe at present.
- fourseventy 8mo agoThe early VCs have been in Stripe for 16 years already. They need Stripe to IPO so they can get liquidity in order to provide returns to their LPs. VCs can't hold onto the stock forever, they need to provide DPI otherwise they won't be able to raise future funds.