CAVA’s IPO was a ‘break in the clouds’ for the icy IPO market, says one of its early investors. Will others follow?

Klein, a partner at venture capital firm Revolution, hopped on the phone with Term Sheet less than two hours after market close and right before he headed off to a celebratory dinner with CAVA’s management team in Hudson Yards. After all, there was a lot to celebrate. After what’s been an extraordinarily dry IPO market, CAVA’s blockbuster IPO—in which shares rose 99% from market open to close to nearly $44—the Washington, D.C.-based fast-casual restaurant’s debut on the New York Stock Exchange offered a much-needed respite to the startup ecosystem: a glimmer of hope that exits are still within reach, even for unprofitable companies.

“I don’t want to overstate it, but it felt like a real break in the clouds from the environment that we’ve been in for the last 18 months or so,” Klein says… Read Full Article