009 – The 2020 IPO Climate
In a live episode recorded in front of a virtual audience on Teooh, Doug and Gene discuss the IPO market, the new focus on profitability, direct listings, and take questions from the audience.
Top 3 Takeaways:
- The trajectory of many prominent 2019 IPOs and a new focus of profitability will ultimately result in fewer listings in 2020.
- As many private companies shift the narrative to focus on the path to profitability, skeptical public market investors will need to see proof that they are serious before buying into that new narrative.
- Large public investors prefer direct listings, as the float is much higher and they are able to build large positions more efficiently.
- [1:30] What the current record year for IPOs means for investor appetite going forward.
- [3:30] The performance of recent IPOS and how it affects upcoming listings.
- [7:10] Is the mini-correction we are seeing in the private markets similar to the dot com bubble?
- [9:15] Fining the path to profitability and how it impacts valuation
- [16:20] How direct listings work
- [19:25] Do buy-side investors want direct listings to gain popularity or favor the status quo?
- [22:45] Questions from the audience