Mayur Vyas, CPA’s Post

Is Reddit's potential $5 billion IPO valuation a cautious step back or a strategic leap forward in today's unpredictable market? Reddit, Inc. Inc. is currently weighing its IPO options, with early investor meetings suggesting a valuation target of at least $5 billion. This figure is notably below the company's private market valuation, which peaked at $10 billion in 2021. In a market that's witnessed tech giants recalibrate and downsize valuations, Reddit's choice seems reflective of a broader trend. The company's 2021 valuation at $10 billion, with prospects reaching as high as $15 billion, now contrasts sharply with current private trades valuing it between $4.5 and $4.8 billion. However, it's crucial to consider the context. The market for IPOs is still thawing from its freeze, and the valuation is yet to solidify. Remember Instacart? Once valued at $39 billion, its public debut was at a significantly lower $9.9 billion. Reddit, a central figure in the meme-stock frenzy of 2021, represents not just a company but a symbol of the volatile, crowd-driven market dynamics of recent years. What does this mean for potential investors and the market at large? Reddit's cautious valuation could be a harbinger of a more grounded approach in tech IPOs. The company's history and influence, especially its role in the meme-stock era, add a unique twist to its market perception. The final IPO valuation and timing are still in flux, and it will be interesting to see how Reddit navigates the current market environment, balancing its iconic status with investor expectations. What's your take on Reddit's IPO strategy? Is this a smart move in a market still reeling from overvaluations, or is it too cautious, underselling the company's true potential? #RedditIPO #TechValuation #MarketDynamics Mergers and Acquisitions - themiddlemarket.com

Reddit files for a public offering, marking a significant development in the tech sector for 2024. This step reflects not only on Reddit's growth trajectory but also on the evolving dynamics of tech IPOs. For an in-depth look at what this means for investors and the industry, read our article: https://lnkd.in/eJU9iAgr #Reddit #IPO #TechNews Follow Tech Insight

VCs will get liquidity in 2024 from the secondary market, not IPOs In 2023, many VCs thought 2024 would see the IPO market bounce back, according to TechCrunch. Yet, with Q1 almost done, there's hardly a major IPO in sight except Reddit. Speculation about potential IPOs, like Shein and Turo, continues with little action. Despite hopes, a Reddit IPO might not kickstart a wider trend, with big names like Databricks, Stripe, and Plaid steering clear of going public this year. High interest rates and low valuations from the 2021 highs make IPOs less appealing. But it's not all bad news. The secondary market, where private shares are sold, is booming as an alternative to IPOs. It's grown massively, with transactions reaching $138 billion in 2023. This market allows companies to offer liquidity without the pressure of going public, showcased by Stripe's $65 billion secondary sale. Even venture funds are getting in on the action, buying or selling shares to manage their portfolios. While the IPO freeze might continue, the secondary market thrives, offering a workaround for companies and investors alike. Source — Tech Crunch

Are you a Founder looking to Exit? Most startups will consider US as the best place to IPO. If you are one of these startups, congratulations! After hearing the congratulations, it is time to get serious and read on. It will cost you roughly $16M to list in the US market! Yup, of course, this cost of $16M can come from the money you have raised, which is "not your money" anyway, right? Some of you will even say "That is why money raised from the equity markets like Nasdaq are considered STUPID money mah." Ya, right. But you know what? If you are a founder and you think like that, then your share price will likely also one day be worth close to nothing. Do proper business. Do the right things and do them right. #business #startup #management #money #investment #ceoinsights

Interesting TechCrunch article on how the secondary market is playing a huge role for early shareholders of pre-IPO technology companies due to the liquidity crunch in a dried up IPO market. We were never in the camp that this was a surprise with interest rates still high, valuations at significant discounts from their highs of 2021 and an overall difficult fundraising environment. We expect the secondary market to be active in the coming years with more companies deciding to delay IPO aspirations. Seafront Capital looks forward to being a vital services provider in the secondary market, providing liquidity to early shareholders while also granting unique access to investments in high-growth technology companies. #IPO #secondarymarket #secondaries #liquidity #techcrunch #SeafrontCapital #getliquid #privatemarkets #privatecompanies #investmentstrategy 🚀 💦

🚀 Exciting news for potential investors as Reddit aims for a $5 billion valuation in its upcoming IPO, sparking anticipation for one of the most anticipated IPOs of 2024. Will 2024 be the year of a more active IPO market? Stay tuned! #RedditIPO #Investing #TechNews #AI #ML #BigData

Last week, Reddit IPOed. And the result for investors was great. And bad. How’s that possible? We hear you ask. Well, Reddit’s share price almost doubled within a week. That makes new investors happy! However, the company’s valuation at the IPO was $3.6 billion (36%!) lower than at their last round in 2021. No need to tell you how old investors feel about that, right? 😬 Welcome to a new phenomenon: the down-round IPO. Once an investor's dread, it's now becoming a common occurrence. Is this the much-needed return to “sanity” after years of bloated valuations? And why should this matter to us as designers? 🔗 : https://lnkd.in/d8ysTES2 #dmba #onlinelearning #designcommunity #businessdesign #ipo #reddit #designthinking

Reddit shares rise 30% to start week after social media company’s IPO Reddit shares jumped 30% on Monday, as investors continued snapping up the stock following last week’s IPO. The shares, which debuted at $34 on Thursday, closed at $59.80. Reddit and existing investors raised roughly $750 million combined in the offering. Reddit shares soared 48% on their first day of trading on the New York Stock Exchange. Several moderators and users, known as Redditors, earn millions of dollars as a group. Along with their friends and family members, they were able to partake in Reddit’s IPO via a directed-share program, a model previously employed by Airbnb, Rivian and Doximity. OpenAI CEO Sam Altman, an early Reddit investor and former board member, saw his stake in the company grow from $200 million to over $613 million after the debut. Reddit’s IPO came the same week that data centre hardware vendor Astera Labs skyrocketed 72% on their opening day on the Nasdaq. Reddit was the first major social media company to go public since Pinterest’s offering in 2019, and investors were monitoring its performance to gauge whether the IPO market might pick up after a long lull due to rising interest rates and inflationary concerns starting in 2022. Plexo Capital founding managing partner and Reddit shareholder, Lo Toney, told CNBC that Reddit’s debut was “a positive sign not only for Reddit, but I think also the tech industry and what it might mean for future IPOs.” “One thing we know with certainty is that there [was] a lot of investor appetite during the roadshow for Reddit, and we see that it’s continuing to hold up well,” Toney said. “The market is signalling there’s an appetite for more companies to come to the public markets.” Still, Toney said other “dynamics need to happen,” including a few more companies entering the public market before it’s safe to say that the floodgates have opened. Toney noted that some startups have raised a lot of money so they may not be in any hurry to go public and raise more cash. “At the same time there are instances where the last private market financing may be higher than what the public market will accept as a public company valuation,” Toney said. Reddit had a private market valuation of $10 billion in 2021 when it last raised a funding round, according to deal-tracking service Pitchbook, and was valued at roughly $6.5 billion based on its IPO price of $34 per share. IQ Management Consultancy #news #trending #dailynews #technews #sharenews #viralnews #dailynewsupdates #viral #trendingnews

Morgan Stanley banker sees 10 to 15 more tech IPOs in 2024, and a ‘better year’ in 2025 ➡ Morgan Stanley, which led the Reddit and Astera Labs IPOs, expects 10 to 15 more tech offerings this year and a “better year” in 2025. ➡Colin Stewart, head of the bank’s tech equity capital markets practice, told CNBC that valuations are back to where they were in 2018 and 2019. ➡“What’s happened in the last six to 12 months is that the market has gotten more comfortable with paying for growth again,” Stewart said. So what is the next IPO? Stripe? Read more: https://lnkd.in/ggjKCmBP