pre-IPO company investment opportunities
Anyone investing in pre-IPO companies during this stock market roller coaster? Any good deals to be had? Looking at Discord, Aviatrix, Automation Anywhere and Databricks. Concerns - Discord - valuation is high, and losing money. Is the moat large enough? Automation Anywhere - is the rise of Generative AI a negative for them? Aviatrix - Is the business strong enough to go IPO? Databricks - With the stock market downturn (and now upturn) I am lost on how to value this company.
Very few ipo are successful. We just see success stories and no one talk about failures eg wish , bumble, afrm, jfrog.. list goes on. There are severe risks in pre ipo: You may end up buying into bad or weak business (eg wish, Aviatrix) You may end up buying good business but crazy high valuation (eg stripe, databrick) You have limited knowledge of cash flow, balances sheet, other quality aspects like execution and competition. You have many restrictions on selling your shares. Better to stay away
Thanks. Why do you consider Aviatrix as bad/weak business? I hear they are making good revenue which is rare for a startup.
OpenAi?
Forge Global is not listing this company. Are you aware of any other exchange listing it? I am interested in it. But I thought the boat had sailed after the Microsoft announcement.
There are very less companies who have resource to invest money on training such large data set, and most of the companies wont invest there. They might just get apis from openAI That’s what i feel