Archive: IPO

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Patience Pays in Startup Investing

By Adam Sharp on February 9, 2021

I recently had my first startup investment go public. But don’t get too excited yet. The company, Plurilock Security, just listed on the Toronto Venture Exchange at quite a tiny valuation — around $15 million. I took the opportunity to add to my position. I really wish more companies would go public early, but that’s not how it works these days. Going public is a huge ordeal in the United States. And companies usually wait until…

The Disadvantages of a SPAC Investment

By Andy Gordon on January 20, 2021

Special purpose acquisition companies (SPACs) are enjoying their moment in the sun. They’ve shot into prominence as a way for startups to make an initial public offering (IPO) and join public stock exchanges. They offer founders unprecedented speed. And for some investors — more…

Beware Hot Tech Stocks

By Adam Sharp on December 11, 2020

As you might have heard, Airbnb had its long-awaited IPO (initial public offering) yesterday. Like a lot of hot public offerings this year, it was pure insanity. Airbnb’s IPO shares were initially priced at $68 — so that’s the price that a small group of well-connected…

Be Ready for Direct Listings

By Vin Narayanan on December 9, 2020

I’m starting to think IPOs — initial public offerings — are overrated. That’s a really weird thing for an early investor to say. Because for early investors, the IPO is the holy grail. It’s why you invest in startups. An IPO is one of the few moments in…

What to Do When a Startup Goes Public

By Andy Gordon on November 18, 2020

Every investor would love to have my dilemma. One of my First Stage Investor portfolio companies will be listing on a public stock market (also known as going public or IPO’ing) in a couple of months.  I first recommended this company back in 2016…
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Startup Insider: Assessing Founder Risk

By Early Investing on September 21, 2020

Last week, StockX cofounder Josh Luber left the company he started in 2016. Luber helped build StockX into a $1 billion startup. It hasn’t gone public yet. StockX is probably in good hands. But Luber’s departure illustrates a problem that faces…

The Real Lesson of the Snowflake IPO

By Adam Sharp on September 18, 2020

On Wednesday, Snowflake (SNOW) went public in one of the most highly anticipated IPOs ever.  Snowflake is a cloud data platform that helps companies efficiently organize and analyze huge databases. The company’s revenue is growing at a rapid 133%…
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Update: Digital Brands Group’s Big Holiday Plans

By Andy Gordon on September 14, 2020

DBG (Digital Brands Group) has been busy.  DBG holds a special place in our hearts — and in our portfolio. It’s the only startup we’ve recommended three times. We originally recommended DBG in 2016. Back then, the company went by…

The New Way to Generate Wealth

By John Fanning on September 9, 2020

Note: A few weeks ago, we welcomed John Fanning to the Early Investing family. Today, we’re pleased to bring you his second column. If you’re not familiar with John, he’s worth getting to know. He was the founding chairman and CEO of napster. He…

The Power of the Private Market

By Adam Sharp on July 31, 2020

Two amazing American companies went public (IPO’d) in 2004 — Google (GOOG) and Domino’s Pizza (DPZ).  Since then, Google (now Alphabet) has become one of the largest companies in the world. Today it’s worth more than $1 trillion. Domino’s is currently valued…

The Problem With Ratchet Terms

By Andy Gordon on January 15, 2020

After a slew of underperforming IPOs, investors seem more risk-averse than they used to be. And that may mean ratchet terms are on the rise.

Mailbag: When to Sell and When to Hold

By Early Investing on December 13, 2019

In this week’s Mailbag, the Early Investing team addresses when to sell shares after a startup IPOs and how to handle a failing startup investment.

How to Ignite Capital Growth in 2020 (Not Through IPOs)

By Andy Gordon on December 11, 2019

Direct listings minimize risk for startup investors and help them cash out faster. But they also come with a downside. Fortunately, that may change in 2020.

Mailbag: To Short or Not to Short

By Early Investing on December 6, 2019

In this week’s Mailbag, the Early Investing team explains whether it recommends shorting U.S. stocks and what happens to your shares when a startup gets bought out.
In this week’s Mailbag, the Early Investing team addresses startup funding rounds and whether Uber and Lyft are good buys.

Why Big Budgets Can Lead to Low Returns

By Andy Gordon on October 16, 2019

The most successful IPOs over the past decade all have one thing in common. And it’s not revenue growth.