This post is by Jason Lemkin from SaaStr
Click here to view on the original site: Original Post
It isn’t as radical change as it seems, but direct listings will become much more common. Now we have 2 big successes (Spotify + Slack), and 0 failures here. In the Age of the Unicorn, more and more start-ups will raise IPO levels of capital before an IPO. This is a new phenomenon, relatively speaking. Assuming their burn rate is also low, and the brand is strong enough to jump start liquidity without an IPO … why sell any primary shares and take the dilution from a traditional IPO? There’s no reason anymore, in many cases.
View original question on quora The post What do think of companies such as Slack and Spotify going direct IPO, and will it change the IPO markets going forward? appeared first on SaaStr.
AMAZING execution today on the Slack direct listing. $WORK closed within 1% of the initial open pricing (compared to 50-100% recent mis-pricings with standard IPO). Congrats to Slack, Morgan Stanley (advisor to DMM), and Citadel (DMM). Well done.— Bill Gurley (@bgurley) June 20, 2019