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IPO Rundown With Aaron Dillon, Why the Bull Market Isn’t Finished Going Up

The Compound and Friends

Tue 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"