are investors forcing companies to ipo?

Stitch Fix TnfFjm
May 17 11 Comments

uber, lyft, zoom, pagerduty, beyondmeats, fastly, crowdstrike, swav... etc all these companies have IPO’d recently. There are more to this list, which I have probably missed.

Does this mean investors want to cash out by this year or in the next few months? and does this mean a definite recession sometime this year in the later half?

What are your thoughts?

Yes : recession
No : no recession

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TOP 11 Comments
  • Quora iSjP52
    VC funds have 10 year windows. Most of those companies are nearing 10 years or are hire for funds which are nearing 10 years. They have to return money to investors so they are forcing them to go public now
    May 17 1
    • New / Product nqbk00
      This is a very good answer too. LP’s gotta get their return, and they do have 10 year windows which VC’s must return said money.
      May 17
  • Google Cawk Block
    It’s the opposite. As mark Cuban said, most of these IPOs hit too late and are no longer growth stories. Investors are getting greedy and waiting longer to make more $$
    May 17 0
  • Nutanix xAQr80
    There are only two types of liquidity events, IPO or acquisition. The IPO market is very volatile so when the window opens the companies jump through as quickly as possible. Right now IPO's are in favor so if there is a plan to go public in the next 12 months companies accelerate that plan. This window will close very soon and the companies that didn't IPO will be forced to dilute further with the bigger VC's. Once a company IPO's they have two options for continued funding with public and private placement.
    May 18 0
  • New / Product nqbk00
    The most likely answer is stock markets reach near highs, which means its usually the best time to IPO.
    May 17 1
    • Stitch Fix BhdceE
      yes that’s an interesting thought too. Given how the market has been fluctuating recently makes me believe there is definitely a huge volatility.

      I also know companies don’t like to IPO during volatility and if they have filed to go IPO, they can pull back from IPOing and decide to do it later.

      And most of these companies which have IPO’d are not netting profits at all and are really far from it.

      For such companies to IPO, makes me think they are doing it out of pressure from investors or some external push.

      Not sure about any of this, I am not an analyst and I am below average in understanding of market and related details.. but would love your analysis.
      May 17
  • Google 🍊 has
    Yes, they got spooked by the correction in Q4 last year
    May 17 0
  • New AsYK38
    If everyone says there will be a recession their likely won't be a big one.
    May 17 1
    • Nutanix xAQr80
      I wouldn't bet on it being small. We will be coming off the largest expansion in history. There is also a tremendous amount of instability in the US and internationally.
      May 18
  • New / Eng Mr Stark
    I think things might slow down a bit but not sure if this year. I will bet more on it the next year if a Democrat is elected president and also I am not betting on a big recession but a long flat line which probably will be as painful
    May 19 0
  • Druva / Other KvOF35
    Everyone wants ipo. Execs have most of those comp in options and rsu. They want access to it.
    May 17 0