Instacart finally IPOed at $30 today. CART 0.00%↑ stock opened at $42 but slowly trended down and eventually closed at $33.7, valuing the company at ~$11.1B. Overall, this is a successful IPO and early investors make a lot of money. According to a report from The Information, Sequoia purchased $8M worth of Instacart stock at $0.24/share back in 2013. That $8M investment is now worth more than $1.1B at today’s closing price. Investors who purchased the stock since 2020 are not seeing amazing returns though, with purchase prices from $46.3 to $125 per share. I don’t know if investors who bought the stock at $125/share have any preferences. If not, they will be taking a 70+% hit. But at least they are finally able to get some liquidity. Most people who are selling their private company stock on the secondary market are taking similar hits. These valuation resets actually make the private investments more attractive and I believe we need to see further discounts on valuations for seed and pre-seed startups to make it worthwhile for investors.
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