Tech IPOs Could Burn Firms Who Bought Into Hot Startups Too Late
The end of the IPO drought will mean riches for some, but it won’t provide relief for those who invested at huge valuations over the past few years.
Illustration: Tomi Um for Bloomberg Businessweek
On the day Instacart held its initial public offering in September, the company’s market value was just a quarter of the $39 billion price tag investors had put on it in March 2021, when it was a privately held startup. Still, Sequoia Capital, which first invested in the company in 2013, held a stake worth more than $1 billion at the time of the IPO.
Not all the investors were as fortunate.
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Tech IPOs Could Burn Firms Who Bought Into Hot Startups Too Late