A theory about the current IPO market – TechCrunch

Share as expected Poshmark exploded this morning, up 130% in afternoon trade IPO price of $ 42 over the company’s above limit. Another POSMark IPO came a day after Afram Public markets are treated similarly.

Both were preceded by explosive disputes. By C3.ai, Doordarshan and Airbnb’s huge December debuts. Today it seems that any enterprise-backed company that can claim some sort of tech mantle is being considered as having a strong IPO pricing and huge results on the first day.

This is, of course, disturbing to some people. In short, some elements of the venture capital community that would like to keep all external profits in their pocket. but never mind. You must be wondering what is going on. Let’s talk about it.

Here’s how you get the first day’s IPO pop

TechCrunch has covered the IPO window closely as we can see over the years. And late-stage venture capital markets, with changing prices of technology stocks and a surge in consumer (retail) investment.

Based on my participation in that reporting as much as I can participate here, you get a 130% first-day IPO pop at a company that is actually long enough for the mathematic of fair growth and profit expectations for investors Is from Future:

  1. Exist in a climate of zero interest rates. This causes super-cheap money, bonds to get messed up and no one wants to keep cash. Lots of dollars move to more speculative assets like stock. And a lot of money goes into foreign investment, Like Venture Capital Funds.