The last time Roblox came up I said it would probably IPO at around $10-15b, which would already be a 2x exit, so wow, that's, uh, quite a bit higher. I guess we'll have to see if it maintains...
The last time Roblox came up I said it would probably IPO at around $10-15b, which would already be a 2x exit, so wow, that's, uh, quite a bit higher. I guess we'll have to see if it maintains market value once the public exit happens but I would expect it to increase.
Also interesting is the eschewment of the traditional IPO process. This is a trend that will continue I think, at least for companies are that "hot". For those unfamiliar, in a traditional IPO you block of a big chunk of equity that you're going to sell. Then, you contract Goldman Sachs, Morgan Stanley, etc. (Investment Banks), who then give you a small army of bankers (not related, but it always surprised people when I tell them that junior IBs work 80 hours in a good week and 120 hours in a bad week - not an exaggeration, that is exactly how many hours they work) that price your company, and contact investors who may want to buy.
There has been disappointment recently in IPOs because many people have considered IBs to have mispriced companies. For instance, AirBnB IPOd at 40b or so, so they sold that chunk of equity at 40b valuation, then immediately skyrocketed to 90-100b in valuation on the public markets. So people are saying that AirBnB left a huge chunk of money on the table - they could have raised 2x what they did for their equity.
Also, IBs are expensive.
Roblox is planning on doing direct listing, so they skip the IBs and the selling equity at the same price to institutional investors.
edit: also I have some friends at roblox I think they're on-paper millionaires now lol?
The last time Roblox came up I said it would probably IPO at around $10-15b, which would already be a 2x exit, so wow, that's, uh, quite a bit higher. I guess we'll have to see if it maintains market value once the public exit happens but I would expect it to increase.
Also interesting is the eschewment of the traditional IPO process. This is a trend that will continue I think, at least for companies are that "hot". For those unfamiliar, in a traditional IPO you block of a big chunk of equity that you're going to sell. Then, you contract Goldman Sachs, Morgan Stanley, etc. (Investment Banks), who then give you a small army of bankers (not related, but it always surprised people when I tell them that junior IBs work 80 hours in a good week and 120 hours in a bad week - not an exaggeration, that is exactly how many hours they work) that price your company, and contact investors who may want to buy.
There has been disappointment recently in IPOs because many people have considered IBs to have mispriced companies. For instance, AirBnB IPOd at 40b or so, so they sold that chunk of equity at 40b valuation, then immediately skyrocketed to 90-100b in valuation on the public markets. So people are saying that AirBnB left a huge chunk of money on the table - they could have raised 2x what they did for their equity.
Also, IBs are expensive.
Roblox is planning on doing direct listing, so they skip the IBs and the selling equity at the same price to institutional investors.
edit: also I have some friends at roblox I think they're on-paper millionaires now lol?