Rainmaker Securities Managing Director and Co-Founder Greg Martin joins Ed Ludlow and Caroline Hyde to discuss the current IPO landscape and the road ahead for Reddit. He speaks on "Bloomberg Technology." (Source: Bloomberg)
Reddit has been advised to target a valuation of at least $5 billion in a potential initial public offering (IPO) this spring, according to a report from Bloomberg News.
The social media network – which hosts forums for users to share, discuss and vote on content – has been holding meetings with potential IPO investors and advisers have suggested the company should target roughly $5 billion as its valuation, per Bloomberg’s report citing people familiar with the discussions.
Bloomberg noted that private trades of Reddit’s unlisted shares have been traded at a valuation below $5 billion – with would-be buyers on Rainmaker Securities’ platform submitting bids with a value in the $4.5 billion to $4.8 billion range and Forge Global Holdings’ database indicating a $4.8 billion valuation…Read Full Article
Reddit Inc. is weighing feedback from early meetings with potential investors in its initial public offering that it should consider a valuation of at least $5 billion, according to people familiar with the matter, even as it is estimated below that figure in the volatile market for shares of private companies.
The San Francisco-based social media company and its advisers are targeting a valuation in the mid-single-digit billions, the people said, asking not to be identified as the information is private. The ultimate figure will depend on the IPO market’s nascent recovery, the people said. Reddit is considering a possible listing as soon as March, the people said.
Separately, private trades of Reddit’s unlisted shares have valued the company below $5 billion. Potential buyers on Rainmaker Securities’ platform have submitted bids indicating a value of between $4.5 billion and $4.8 billion…Read Full Article
The current venture market is fraught: investors have funnelled billions of euros into startups in recent years, but amid a drought of exits, VCs aren’t cashing out on their investments — and neither are their own investors.
It’s a conundrum that more firms are dealing with now, and one solution VCs have at their disposal is secondaries — where investors, founders and employees sell equity in private companies. Today London-based investment firm Launchbay Capital is announcing that it’s raised $25m, of a target $100m fund, to try and take advantage of what many in the VC industry think could become a booming secondaries market in 2024…Read Full Article
Greg Martin, co-founder and managing director of Rainmaker Securities, joins Caroline Hyde and Ed Ludlow to discuss the OpenAI and SpaceX tender offers and demand for these and other private stocks on the Rainmaker Securities platform. He speaks on "Bloomberg Technology." (Source: Bloomberg)
We’ve seen the bottom of private market valuations, notes Glen Anderson. He discusses the 2024 IPO outlook. He talks about how 2H23 saw a substantial increase in demand for everything we trade. He mentions that investors are starting to put risk on again and the private market appetite generally indicates the appetite for IPOs will be strong. He looks at companies that could be a catalyst for the 2024 IPO market. He then goes over the role of A.I. hype in the 2024 IPO outlook. Tune in to find out more about the stock market today.
Despite a dismal 2023 for IPOs, Rainmaker Securities Managing Director Greg Martin sees a potential ""greenlight situation"" for a rebound in 2024. He notes positive drivers like a dovish Federal Reserve, falling yields, and economic stabilization are making conditions ""quite good"" for public debuts.
While risks like geopolitics remain, Martin expects ""a major 2024 if these conditions hold up."" He notes poor post-IPO performance for 2023 deterred further issuance, but a strong showing by some anticipated offerings could kickstart a ""jetstream"" next year.
In Martin's view, companies demonstrating ""stable, but profitable growth"" will attract investors focused on profitability rather than growth alone.
With 2023 set to be the worst year for global IPOs since the Financial Crisis, Greg Martin, managing director at Rainmaker Securities, joins BNN Bloomberg to discuss his expectations for 2024. He adds there are some big names going public including car rental app Turo.
Improbable has sold The Multiplayer Group, a multiplayer games services company it bought in 2019, to Keywords Studios for £76.5 million ($97.1 million).
Herman Narula, Improbable’s CEO, told CNBC the transaction is part of its “venture builder” strategy, through which it invests in or acquires teams with the option to expand them or spin them out.
The deal to sell MPG, one of Improbable’s many notable bets on gaming, arrives after a series of struggles at the firm.
Narula said he expects to see a “tale of two metaverses” emerge in 2024, where centralized experiences such as Roblox and Fortnite are eschewed in favor of decentralized, “Web3″ versions.
Metaverse company Improbable has sold one of its key gaming ventures to London-listed video game developer Keywords Studios for £76.5 million ($97.1 million).
Several private companies are thinking about going public in 2024, including Chinese fast-fashion retailer Shein and Kim Kardashian's SKIMS shapewear brand. Although investors had high hopes for offerings in 2023, the IPO market fell short of expectations.
Rainmaker Securities Managing Director Greg Martin and EquityZen Head of Business Development & Partnerships Brianne Lynch sit down with Yahoo Finance Live to discuss sentiment on the IPO market heading into 2024 after this year's performance.
OpenAI has been through a rollercoaster ride, first ousting CEO Sam Altman, who then agreed to join Microsoft (MSFT), only for the AI startup to announce that Altman was going to rejoin the company with most of its board having been replaced. OpenAI is set to go through with a share sale that values the company at about $86 billion. But how are investors feeling about the company?
RainMaker Group Holdings Managing Partner Glen Anderson tells Yahoo Finance Live that "the 'buy OpenAI at any price' bid is gone. Sentiment has changed. Investors have a more cautious and pragmatic approach to the stock now."
Anderson says "OpenAI might be the first company to come up with a genuinely useful generative AI product but tech is littered with cases of first movers that lose in the long-run...there are other options to play AI in the market... We've seen sizable investor interest, for example, in Anthropic, Cohere, Databricks and others. The point is there is multiple ways to play AI, with Sam coming back, OpenAI may resurge but investors shouldn't fall in love with one stock." Watch Video
Greg Martin, managing director at Rainmaker Securities, joins BNN Bloomberg to discuss the probability of OpenAI having an IPO on the horizon. Martin says there are some regulatory challenges ahead. However, he expects an IPO on its future. He also discusses Canadian startup Cohere and its likelihood of going public. Watch Video
Investor interest in OpenAI shares on the secondary market has gone from a feeding frenzy to a near standstill as prospective buyers wait for news following the surprise termination of CEO Sam Altman.
Buyer interest in OpenAI stock totaling around $100 million all but evaporated between Thursday and Monday, according to Javier Avalos, CEO of secondary trading platform Caplight.
"Buyers are running for the hills," said Glen Anderson, president of Rainmaker, a bank that trades pre-IPO shares. Anderson added, however, that the dip in investor interest may be temporary, as secondary investors await future developments… Read Full Article
IPO spinoff talk is swirling around Starlink, the SpaceX-owned satellite internet constellation.
Citing people with knowledge of the matter, Bloomberg reports that Starlink could be spun off via IPO by late 2024. Last week billionaire investor Ron Baron — the founder, chief executive officer and portfolio manager at Baron Capital — told CNBC that he expects a Starlink IPO could happen around 2027, with SpaceX worth around $250 billion to $300 billion by that time.
SpaceX has not yet responded to a request for comment on possible Starlink IPO plans…Read Full Article
It’s quiet out there in IPO land — very quiet.
This is it: the weeks before Thanksgiving usually bring a spate of large IPOs eager to go public before the holiday season starts.
“Whatever you are going to get between now and the end of the year should be happening right now,” Don Short, head of venture equity at InvestX, told me.
Except, nothing is happening… Read Full Article
Raising a combined $6.5 billion, three of this year’s biggest US tech listings — Arm Holdings Plc, Klaviyo Inc., and Instacart — face crucial earnings tests this week after lackluster starts for their shares.
The trio will be looking to restore investor faith with their first results since going public over a one-week stretch in September. While newly-listed firms typically give reliable guidance to investment banks to help set fair valuations and leave room to impress, a miss could batter the stocks given investors’ willingness to dump perceived losers.
“If you don’t beat your expectations the first few results you’ll be put in the penalty box for quite some time,” said Greg Martin, co-founder of Rainmaker Securities. “You absolutely have to make sure you make your first — and really second — quarter expectations, otherwise you could be in a world of trouble.” … Read Full Article
Anthropic develops general A.I. systems and large language models. Greg Martin discusses the role of generative A.I. in big tech and the importance of risking valuation for Anthropic and OpenAI. He talks about how Anthropic received a $2B investment from Alphabet (GOOGL) last week which continues the trend of how big tech and PE/VC investors have embraced generative A.I. He goes over generative A.I. trends investors should be watching. OpenAI is an A.I. research and deployment company, as well as the creator of ChatGPT. Martin notes that OpenAI’s value has tripled over its last round of valuation. Tune in to find out more about the stock market today.
Why have wealthy investors surged as the leading buy-side participants in this market segment?
When Mark Zuckerberg launched Facebook, he likely didn’t expect that it would bring about a revolution in the way investors invest. As the social media phenom readied itself for IPO in 2012, both institutional investors and sophisticated individual investors identified the opportunity to access the steepest part of Facebook’s growth curve and began buying shares from early employees and investors prior to the IPO. The vibrant market for Facebook shares was a watershed moment, establishing a new market for actively trading private securities, albeit ones with high barriers to entry and distinct sets of challenges…
Stocks waver after inflation data surprise, Fed minutes: Stock Market Today | October 11, 2023
Greg Martin, managing director at Rainmaker Securities joins BNN Bloomberg to discuss Birkenstock IPO. With a 250-year-old legacy,the German footwear maker could face challenges due to consumer discretionary headwinds, according to Martin. He adds Birkenstock could be compared to Crocs or Allbirds once it goes public. Martin notes the company has seen nice, steady growth in the last decade.