StartupsJan 15, 2019
AirbnbpgRy07

Is Direct Listing a new norm?

Slack is planning direct listing. After Spotify and Slack, do you think this could be the new norm in the tech industry? This would definitely make tons of ppl here REAL millionaires. I personally think only very profitable companies can afford the risk of direct listing. But it seems easier than IPO since there is less restriction/ regulation. What’s your thought?

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Datadog New Relic Jan 15, 2019

When a company doesn’t need money then it makes sense. https://www.theinformation.com/articles/slacks-financials-ahead-of-listing-plans

Pinterest seenitall Jan 15, 2019

If they don't need money, why do it? For their employees? What do you think about the pre-IPO stock trade companies?

Uber SuperAdmin Jan 15, 2019

There are pros and cons, and liquidity, for all shareholders and the company itself, is a large pro.

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DvVM00 Jan 15, 2019

2nd company you’ve heard of and suddenly it’s a “new norm”? lol

Airbnb pgRy07 OP Jan 15, 2019

Because precedent matters DUH

Pinterest xlsprnd Jan 15, 2019

Only need two data points to draw a trend line :)

Uber uberipo Jan 15, 2019

But you can’t raise money with direct listing, which renders this option unusable for Airbnb.

Airbnb ugotserved Jan 15, 2019

Why? We’ve raised enough already.

Uber uberipo Jan 15, 2019

Ok in that case make much more sense. But the board needs to think this way (not raising capital).

Uber Googlerrr1 Jan 17, 2019

You’re asking a bunch of engineers what they think about the latest trend in IPOs. I would bet most people here haven’t the slightest idea of the factors that went into Spotify and slacks decision

Airbnb AirJoJo5 Jan 17, 2019

How would a direct IPO impact stock prices in IPO? From my reading a direct IPO doesn't create a new pool of stock. So- does that mean it's only the ISOs/RSUs and whatever notes the VCs hold? And the existing company held non-issued stock? Let's say for example a company unit of stock is valued at $100 via 409a. What happens in a direct IPO and what could one estimate for increase in value @ IPO?