IPO Market Transformation
The IPO landscape has shifted dramatically, with a stark decline in the profitability of companies going public—from 78% in 1980 to zero last year. This change reflects a growing trend where larger companies with less established business models are entering the market, driven by venture capitalists' focus on scaling rather than solidifying business fundamentals. As a result, the IPO has morphed from a tool for growth into a means for existing investors to cash out, raising concerns about the sustainability of this approach for both businesses and the economy.In this clip
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Prof G Markets
Third Quarter Review — with Aswath Damodaran | Prof G Markets
Related Questions
Why do companies go public? Referencing the episode Prof G Markets: Virgin Galactic is Going to Zero, Stock as Collateral + Instacart & the IPO Market and the clip IPO Insights.
Why do companies go public? Referencing the episode Prof G Markets: Virgin Galactic is Going to Zero, Stock as Collateral + Instacart & the IPO Market and the clip IPO Insights.
Why do companies go public? Referencing the episode Prof G Markets: Virgin Galactic is Going to Zero, Stock as Collateral + Instacart & the IPO Market and the clip IPO Insights