otherScore 35/100Watch
Brad Gersner: Shift in venture/private market dynamics—companies now thinking about IPO at $1B-5B valuations rather than 'stay private forever'; Planet Labs model (10x post-IPO gain) attracting imitators
“We are all advocates of these companies coming public sooner. Had Andrew had his way, he would have been public 18 months ago, probably at $10 billion rather than $50 billion. And that 5x over the course of the last two years would have gone to public market investors. So go ahead... I see the pendulum swinging back to companies are like man I want to be like Planet Labs and get public, right? and and have to play in the big leagues and do it in the public markets.”
Why it matters
A fundamental shift in private company founder and VC thinking: earlier IPOs unlock better risk-adjusted returns for public market investors and provide stability for mission-critical infrastructure (government customers). This reverses a decade of 'stay private' mentality.
Investment implication
More and larger IPOs expected in 2024-2026 across AI, space, robotics, and biotech. Public markets will capture more upside. IPO windows will accelerate fundraising for growth-stage companies. Expect faster capital deployment and more public market volatility/opportunity.