PodcastsThe Compound and FriendsIPO Rundown With Aaron Dillon, Why the Bull Market Isn’t Finished Going Up
IPO Rundown With Aaron Dillon, Why the Bull Market Isn’t Finished Going Up
The Compound and FriendsTue Sep 05 2023
IPO Rundown with Aaron Dillon:
- IPO market gradually tiptoeing back after an 18-month freeze
- Thaw in the IPO market signifies a return to business as usual and risk appetite
- Companies approaching IPOs include Clavio, Arm Holdings, Instacart, SpaceX, Starlink
- Valuations of pre-IPO stocks have reset to market expectations
- Secondary pre-IPO market shows a 30% decrease in valuations since last primary funding round
Clavio: Data Management and Marketing Solution:
- Provides data analysis and personalized marketing strategies for businesses
- Has 130,000 business customers and $585 million in trailing 12-month revenue
- Recently turned profitable with $15 million in net income
Arm Holdings: Semiconductor Company:
- Owned by SoftBank and looking to go public after failed acquisition by Nvidia
- Revenue down 1%, net income down 4.5%
- SoftBank aiming for a valuation of $52 billion in the IPO
Demand for Pre-IPO Stocks in Wealth Management:
- Advisors are showing increasing interest in venture capital investments
- Most advisors currently focus on private real estate deals and private equity investments
- Limited access to direct investments due to high minimums and lack of connections with venture capitalists
Accessing Pre-IPO Stocks through Secondary Market:
- Secondary market allows investors to buy shares from employees or venture capital funds
- Brokers specialized in pre-IPO stocks provide access to these shares
- Minimum investment amounts typically north of $100,000 per transaction
Challenges Faced by Financial Advisors:
- Limited time window for due diligence when investing in pre-IPO stocks
- Reliance on brokers' insights and market orders due to limited time frame for decision-making
Rocket Money Sponsorship:
- Rocket Money is sponsoring the episode of "The Compound and Friends"