Sand Hill Road Technologies Fund的动态

?? All the Wall Street news you need to know before you start your day - July 2nd, 2024! Sourced from Litquidity’s Exec Sum. #TodayOnWallStreet ?? ?? Headlines: - Average S&P 500 stock is lagging the index by most since 1990 (WSJ) - Five stocks accounted for ~60% of S&P's H1 gain (FT) - Hedge funds dumped tech stocks at fastest pace since 2016 (RT) - Chewy execs sound alarm over 'Roaring Kitty's' 6.6% stake (RT) - AI-focused tech firms saw big jumps in market cap in June (RT) - EU charged Meta with anti-competition violations (WSJ) ?? M&A: - The owners of Boston Celtics are planning the sell the team; the Celtics were valued at $4.7B in October (FT)? - Robinhood agreed to acquire AI research platform Pluto Capital (BBG)? - PE firms including EQT, BC Partners, and General Atlantic are interested in a stake in Europe's top basketball league EuroLeague, whose owner is seeking a ~$1.1B valuation (RT)? - Paramount Global is holding talks to merge its Paramount+ streaming service with an existing platform (CNBC) - EQT is nearing a deal to acquire a 30% stake in German transit operator Flix at $3.2B valuation (BBG)? - PE firm Altor agreed to acquire a majority stake in business resilience software provider F24 from PE firm Hg (BBG)? - Google acquired a stake in BlackRock-owned Taiwanese solar developer New Green Power (RT)? - Danish transport group DSV and CVC Capital Partners are among lead bidders for Deutsche Bahn's logistics unit (BBG) ?? IPOs: - Northern Data is weighing an IPO of its AI data center and cloud unit that could fetch an up to $16B valuation (BBG)? - Indian health insurer Niva Bupa filed for an IPO to raise up to $360M (RT)? - Colombian airline Avianca Group confidentially filed for a US IPO (RT) ?? Restructuring: - Delta Apparel, the owner of brands Salt Life and Soffe, filed for Chapter 11 bankruptcy and plans to sell its brands (BBG)? - Furniture retailer Conn’s is considering filing for Chapter 11 bankruptcy (BBG) ?? Fundraising: - Bridgewater Associates launched a $2B fund run by ML (BBG) ?? What story are you keeping your eyes on the most? Follow Today on Wall Street for DAILY finance news! ?? ??? #WallStreet #FinanceNews #BankingNews

2025 is off to an optimistic start for the deals market. Wall Street is preparing for a wave of initial public offerings as Private Equity firms seek to capitalise on strong U.S. equity markets to exit flagship investments. Companies like Medline Industries, LP and Genesys have already filed IPO paperwork, with more announcements expected in the first half of the year. The revival follows a strong 2024, where 9 of the 10 largest IPOs ended above their listing price, including Reddit, Inc.’s blockbuster debut, which achieved triple-digit gains. Optimism is fuelled by Federal Reserve rate cuts, a pro-business regulatory outlook, and the broader strength of U.S. stocks, which have surged nearly 70% since 2022. Private Equity-backed IPOs are set to dominate as firms face pressure to return cash to investors after a prolonged dealmaking drought. The focus has shifted from speculative startups to established companies, reflecting lessons learned from the overheated market of 2021. Investors now favour larger, more stable businesses with strong profitability, making Private Equity-backed IPOs particularly appealing. Source: Financial Times

At the median, top-line valuations showed a quarter-over- quarter uptick across all stages, which is a positive sign. However, a look deeper in the data shows that those top- line figures are not much higher than these companies’ previous valuations. Median Q1 early-stage and late-stage valuation step-ups were either flat or down, and RVVC and VVC figures show that growth between rounds has remained lower than trend. AI continues to drive investment figures, and the valuations the technology is generating are another highlight of the interest it drives from investors. The median late-stage AI valuation is $40 million higher than that of fintech or SaaS, and the sector has shown continuous growth in its median valuation since the market began its slowdown. Other sectors cannot say the same. Exit step-ups are low. The few IPOs that have occurred have shown as positive signs for the market, but there remains a large disconnect between public and private valuations. Reddit took a roughly 40% haircut at its IPO from its previous valuation ($10 billion). For all exit types, later-round investors are taking a hit at exit, or they are not seeing the immediate returns they had expected from their investments. Secondary data shows that shares were trading at median and average discounts of 37% and 28%, respectively, showing the challenge of realizing sturdy returns. Though those are an uptick from early in 2023, they remain well below the price at which many investors would like to offload shares. The lengthy slowdown has worked to decrease the bid ask spread, which is a benefit for more timely sales. The recent talk around bridge financing reflects the ongoing challenging fundraising dynamics. The number of flat and down rounds as a proportion of all VC deals expanded consistently since Q1 2022 on a QoQ basis, notching 27.4% in Q1 2024—the highest level in a decade. Common stockholders and early-stage investors face the challenge of highly dilutive terms.

?????? ?????? ?????????? ?????? ?????? ?????? ????????????????? In 2021, we saw a record-breaking 1,035 IPOs—but just a year later, that number swung wildly, down ????%, with only 181 IPOs in 2022. Since then, IPO activity has remained subdued. Looking ahead to 2025, however, improving market conditions are setting the stage for a ???????????????????? in IPOs. For fun, I’m sharing this Crunchbase News article speculating on ?????? ?????????????????? ???????? ?????????? ???? ???????????? in 2025: https://lnkd.in/dqsS9axY Note: This isn’t a prediction or endorsement of these companies, just an interesting read. For the average index investor, this halt in IPO activity may have gone unnoticed. But for startup employees with equity compensation, the slow IPO market has been frustrating. But ???? ??????’???? ?? ?????????????? ????????????????, ???????? ????’?? ???????? ???? ?????????? ???????????????? ?????? ???????? ????????????. Equity compensation—especially Incentive Stock Options (ISOs)—?????????? ???????? ???????????????? ??????????????????????, ?????? ???? ???????? ???????????????? ?????????????? ?????? ????????????????. Without careful tax planning, Short-term Capital Gains taxes and Alternative Minimum Tax (AMT) can erode the value of your hard-earned gains. However, strategies like ?????????? ???????????????????? or ?????????????????? ?????? ???????? ???????????????? ???????? ???????? can help reduce your tax liability and maximize your financial outcome. Ready to build a personalized plan for your equity compensation? Learn more https://lnkd.in/gJVpPB6s #ipo #tech #taxplanning

Today’s early-stage VC market appears to be full of contradictions. While total amount of capital deployed in Series A rounds in 2024 exceeded 2019 levels, the number of new Series A investments dropped substantially. At the same time, reported valuations and the median amount of capital deployed in each investment appear to have risen dramatically. To put this in perspective: In 2024, 31% of Series A investments exceeded $50 million of invested capital, which is a sharp increase from just 4% in 2017. This data supports the observations of many commentators that VCs are investing larger amounts in more mature portfolios for their A rounds. However, it has been noted elsewhere that many otherwise successful companies have raised funds at valuations that have been repriced downwards or on similar terms to those achieved during the pandemic sugar rush. Down rounds are rarely publicized and there is clearly some degree of disclosure bias in today’s data. Despite the green shoots of recovery, the environment remains challenging. 2023 and 2024 has been a story of layoffs as some companies seek to stretch their cash runway and hit critical data milestones that can secure new investment. For others, when data hasn’t worked out, it can be terminal, something we are seeing in the data around companies filing for bankruptcy. Whilst there are some signs of an improving IPO market, the amount of capital raised at IPO in the last 4 quarters is still below that seen in 2019. IPO has only been a viable exit for just a handful of companies which when combined with notably low M&A levels during 2024, means that the exit environment continues to be muted. 2025 is going to be a very interesting year … If you would like a no-obligation conversation with us, please contact my colleagues Steve Waterman, Kyriakos Tzafestas PhD or drop me line. Previous Valuation Carousels https://lnkd.in/eDiz76bJ https://lnkd.in/eJ5jT7Wf #Biotech #VentureCapital #Valuation

In 2011 when we were writing the SEC S-1 registration statement for the Annie's Inc. IPO, we insisted that this language about our mission, values, and positive social intent was prominent in "the box" for everyone to see. There was significant banker push-back about it, like we might not be considered a serious business with this "soft" stuff in there. Mission & values (almost) never showed up like this in IPO filings. As I look at the #emergingbrands landscape today with respect to brands winning at scale, what they stand for, and the consumers they serve, it strikes me how massively this space has evolved in just 10+ years. Values lead everywhere, and that's great for everyone. My prediction: #cpg emerging brand IPO's of the future will bring, it full stop. Investors understand how important it is for brands to connect on this level with the consumers they serve.

People who are solely invested in publicly-traded stocks could be missing out on the wealth-creating strategy of investing in private markets. https://lnkd.in/gq8KeAvB #stocks #money #investing #investingtips

?? How Is Your IPO Stock Priced? Here's What Business Owners Need to Know! ?? Thinking about taking your company public? One of the biggest questions you’ll face is: How will your IPO stock be priced? The answer is crucial, as it sets the tone for your company’s market debut and future growth. Here’s a breakdown of how the pricing process works: **1. Underwriter's Role: Investment banks, or underwriters, are your key partners in this journey. They dive deep into your company’s financials, growth potential, and industry trends to suggest a price range. Their goal? To find a sweet spot that appeals to investors while ensuring you raise the capital you need. **2. Valuation Techniques: Several methods are used to estimate your company’s value: Comparable Company Analysis: Your business is compared to similar, already public companies to gauge what the market might be willing to pay. Discounted Cash Flow (DCF) Analysis: This method looks at your future cash flow projections and discounts them to their present value, giving a clear picture of your company’s worth. **3. Market Dynamics: Current market conditions play a huge role. In a strong, bullish market, your stock might command a higher price. In a more conservative market, a lower price might be necessary to ensure investor interest. **4. Investor Feedback: During the "roadshow," you’ll present your company to potential investors. Their reactions can lead to adjustments in the pricing, ensuring that the final price aligns with market expectations. **5. Final Pricing: The night before your IPO, the final price is set. This decision is a balancing act—it needs to be attractive to investors but also reflect the true value of your company. ?? Why It Matters: The price of your IPO stock is not just a number; it’s a strategic decision that impacts your company’s capital, reputation, and long-term success. Understanding this process helps you make informed decisions and sets your business up for a successful market entry. Ready to take your company public? Know your worth, and price it right! #IPO #BusinessGrowth #Entrepreneurship #MarketStrategy #PublicListing

The U.S. IPO market is exhibiting a strong rebound, marking its most promising year since 2021. In 2024, companies raised an impressive $41 billion, significantly up from the $24 billion in 2023 and $22 billion in 2022. Although the figure is still far from the record $316.6 billion raised in 2021, it indicates a resurgence and room for growth towards a potential boom in 2025. This increase in activity is fueled by a more favorable economic climate, thanks to the Federal Reserve's recent interest rate cuts, which have lowered borrowing costs and improved the conditions for startups entering the public market. Investor confidence is also on the rise due to anticipated policy changes, with expected deregulation under the new administration shaping a conducive atmosphere for IPOs. Analyst Ross Carmel points out that regulatory loosening could be crucial in allowing early-stage companies to blossom, subsequently boosting IPO activities. The 2025 IPO landscape appears promising, with exciting prospects such as AI chip startup Cerebras Systems and Swedish payments processor Klarna preparing to test the waters. Success stories from these ventures could trigger a wave of matured companies to step into the public domain by 2025. The private market's vigorous activity further underlines the positive outlook, highlighted by significant fundraisings involving entities like SpaceX and OpenAI. Despite past uncertainties and mixed results from notable IPOs, optimism prevails for the upcoming IPO initiatives. Adding to the diverse and dynamic environment, recent standout IPOs from various sectors, such as a cold-storage warehouse operator raising $5.10 billion, underscore the breadth of investor interest. This robust activity sets a vibrant stage for new IPO entries in the years to come, foreshadowing a dynamic and thriving IPO landscape as we move towards 2025. #IPOTrends #InvestmentOpportunities #Economy https://lnkd.in/dy_8mzNv

Interesting that this should pop up today (although the cynic in me says it's a calculated part of The Times' 'Revive the City' campaign ??) On the other hand - it's sentiment / confidence that moves that market and there are certainly indicators that the IPO horizon will open up in 2025. This piece emphasises the importance of a clear equity story, assembling a strong advisory team, and maintaining transparency to build investor trust. It also highlights the critical role of robust leadership in navigating the complexities of an IPO - which made me think, we spend a lot of time talking about what part macros/valuations have played in the IPO drought but what about leadership dynamics? Here’s what I’m seeing: - ???????????????????? ?????????? ?????????? ???????????????? - constant change at the top can shake confidence and delay IPO plans - ???????????????????? ???? ????????-????-?????????? - investors want transparency, solid reporting, and leaders who can pass the sunshine test - ????’?? ?????? ???????? ?????? ?????? - a robust leadership team - CFO, legal, ops and people leads - sets the foundation for a realisable IPO strategy Let's see what 2025 brings! https://lnkd.in/eq56PfzH