Peter Goldstein’s Post

Most of the IPOs fail. Still many founders want it. Why? Because it is glamorous? Going public is a dream for many companies. But, the truth is, the IPO process is far from glamorous. Here are some harsh realities: → It's expensive IPOs are costly and can drain your resources → It's time consuming The IPO process can take months or even years → It's unpredictable Market conditions can change in an instant, and if they do, your IPO could be in jeopardy Going public is not always the best option for every company. Before considering an IPO, ask yourself. Do you have the resources and stamina to see it through? Going public means → scrutiny from investors, regulators and the public. → every decision will be under the microscope. ↳ You will also have to meet quarterly expectations ↳ which can lead to short-term thinking. The focus shifts from building a strong company to just hitting the next target. There’s also the risk of losing control. Once you’re public, you answer to shareholders. Their priorities might not always align with yours. And remember, not every IPO is a success. Many companies struggle to maintain their valuation post-IPO. The initial excitement can fade quickly, leaving you with a lot of work to do. So, weigh the pros and cons carefully. Going public can be a great move for some companies, but it’s not the only path to success. #IPO #Public #HardWork

On a lighter note - 21 days - paisa double! All the listed companies, shall take their company private, and then come for an IPO, the market would be more than willing to offer higher valuations. That's a sure-shot guarantee for a lot of companies. It could be, the RIL, HDFCs of the world. If not double, a minimum of 1.25x to 2x can be easily made. A Lot of those companies that brought IPOs in 2021-till date, should see price drop of 25-50% when the 🐻 makes their presence felt.

The IPO boom peaked in 2021 with 1,035 IPOs, dropping to 154 in 2023. This year shows signs of recovery with 81 IPOs so far. Profits from IPOs are one of the primary ways that VCs are able to distribute capital back to their LPs. Find out if Carta data points to the IPO market heating up, and what's brewing in the M&A market.

Here are 15 IPOs w/ <$500M in revenue. They did more than fine. 9x+ since IPO. The narrative that "only massive companies doing >$700M in revenue can go public" is false. smaller cos can 100% go public w/ good growth + efficiency (rule of 40).

🤔Is investing in newly listed companies (IPOs) more profitable than investing in market averages? 💡Research usually finds that IPOs do worse, but some types of companies do much better than averages. What makes them stand out? 🚀 * Tech IPOs do outperform the market. Check out the table attached * IPO companies where VCs remain shareholders also see outperformance A couple of sources are in the comments. #investing #IPOcompanies #startupexit

This week, our Tech Contributor Michael Johnston delves into upcoming IPOs, writing, "Investors are eagerly anticipating several noteworthy IPOs in 2024, and success in these offerings could reignite an IPO market that has faced challenges for nearly two years. Here are four highly anticipated IPOs to watch in 2024". Read more here: https://lnkd.in/gKdxhmVB

We learn from the good and the bad. Lessons of victory or defeat teach us how we can either reverse the tide or build a brighter future. We can see these lessons firsthand from some of the biggest global companies when it comes to their IPO strategy. There are those who nail it and those who fall flat. Lots of good insight to take from each! #Investment #IPO #BusinessTransformation

I've been learning about IPOs, and it's piqued my curiosity! After diving into it, I wanted to share a simple overview of what I’ve learned about IPO (Initial Public Offering) An IPO is when a private company offers its shares to the public for the first time, allowing people to buy a piece of the business. Why Do Companies Go for an IPO?🤔 1. Raise Capital To fund growth, new projects, or pay off debts. 2. Increase Visibility Becoming public boosts a company’s reputation. 3. Cash Out Early Investments Early investors and founders can sell some of their shares for profit. What Happens Next? 1. Business Expansion The money raised can help the company grow and enter new markets. 2. Attract More Investors As a public company, it can draw attention from big institutional investors. 3. Stock Value Growth If the company does well, the stock price can go up, rewarding shareholders. 4. Possibility of FPO In the future, the company can issue more shares through an FPO (Follow-on Public Offering). I’m finding it fascinating to see how companies use this to fuel their growth! 💡 Excited to learn more and see how it impacts the market. #IPO #Investing #BusinessGrowth #Finance #LearningEveryDay

For many companies, an initial public offering (IPO) is seen as a pinnacle event. According to the latest data for Q1 2024, there were 287 new IPOs globally. These IPOs raised a cumulative total of 23.7 billion USD. This marks a 7% improvement year-over-year in proceeds.  However, not all IPOs go as planned. When an IPO fails, it can be quite disheartening. But failure isn’t final. It shouldn’t be the reason a company gives up on its goals.  

Ever heard someone say, “Is company ka toh IPO aane wala hai” and thought, what does that even mean? 🤔 Let me break it down for you! IPO stands for Initial Public Offering. It’s when a private company offers its shares to the public for the first time, allowing people like us to buy a piece of the company and own a part of it. Think of it like this: Before an IPO, a company is privately owned by a few people—like its founders, early investors, or employees. But when it decides to expand and raise more money, it goes public by selling shares through an IPO. This helps the company grow and gives investors a chance to earn if the company does well. 📈 Next time someone mentions an IPO, you’ll know exactly what they’re talking about! 💡 #Investment101 #IPODecoded #StockMarketBasics #LearnFinance #InvestSmart