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Why are unicorns pushing back IPOs when the Nasdaq is near record highs?

Why are unicorns pushing back IPOs when the Nasdaq is near record highs?

The unicorns are nonetheless at it, Vision Fund 2 or no Vision Fund 2.

This week, Instacart introduced that it has raised recent capital at a valuation north of $13 billion. And, on the tail of that information merchandise, information broke that DoorDash is wanting so as to add additional cash at a valuation that might stretch to a pre-money valuation that exceeds $15 billion, in line with The Wall Street Journal.

Both bulletins make it plain that late-stage unicorns are nonetheless capable of entice big sums regardless of a putatively unsure, if just lately excitable IPO market.

It’s an attention-grabbing state of affairs, as the costs that super-late-stage unicorns are capable of cost personal buyers push their valuations so excessive that solely the biggest and richest corporations would possibly be capable to afford shopping for them. The consequence may very well be a closed M&A window that leaves solely an exit hatch marked “IPO.”

Amazon, for instance, paid round $13.7 billion for Whole Foods, a series of U.S. grocery shops that the expertise big additionally makes use of as distribution factors for parcel supply. Instacart, the grocery supply service, is now price $13.7 billion as effectively.

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As the personal firm’s closing buyers gained’t wish to merely break even on their funding, Instacart

EditorialTeam

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