a16z - a16z Podcast: On Recent IPOs and Comparing Private vs. Public Valuations
a16z Podcast: On Recent IPOs and Comparing Private vs. Public Valuations
So, it's hip to be Square right now. Or is it? How do we assess [< links to a partial internal summary memo] whether it -- and other recent IPOs -- went well or not, for investors, the company, and others ... and not just on the day-of or day-after, but in the longer term as well?
In this episode of the a16z Podcast, Nicole Irvin and Stephen McDermid from a16z's corporate development team -- and managing partner Scott Kupor -- play back an internal "hallway conversation" of sorts around how to make sense of the recent Square IPO news and reactions. And more broadly, how to actually compare private vs. public valuations. Is there a method to the madness, a formula to compare these from beginning to now (please say it's so)? Does it make a difference if you're creating a new category or in an existing one? And wherefore art thou, Amazon, SaaS, and more.
Finally, we share views on the somewhat religious debate about whether public is really the new private or not, differences between investors, and a few quick considerations for startups on when to stay private and when to go public.