E56: Will pre-IPOs chose the SPAC structure (Better)?, Pre-IPOs give employees liquidity (eToro), Pre-IPO valuations need to reset before going public (Stripe, Klarna)? | Pre-IPO Stock Podcast – Aug 7, 2023 | Clint Sorenson, Nick Fusco, Tim Urie, Aaron Di

Send us Fan Mail00:45 | Will pre-IPOs chose the SPAC structure (Better)?- SPACs are still around in 2023; 16 SPACs having IPO'd and 64 having de-SPACed in H1 2023- There are pros/cons of the SPAC structure vs traditional IPOs. SPACs have been speculative recently due retail optimism and platforms like Reddit- Reputable companies prefer the traditional IPO route with support of big investment banks and proper roadshows09:08 | Pre-IPOs give employees liquidity (eToro)- High growth private companies are staying private for longer and are now offering secondary liquidity events for employees- Secondary market liquidity events are beneficial for retaining talent, especially when a significant portion of their net worth is tied up in company stock- Are company-led secondary market liquidity events good for the secondary market? They provide better price discovery and broadens the shareholder base but can reduce overall transaction activity.16:52 | Pre-IPO valuations need to reset before going public (Stripe, Klarna)?- Do companies need to bite the bullet and do a primary down round so they can prepare to go public- Companies like Stripe and Klarna had primary rounds that reset their prices, and now their secondary market valuations align with their last primary round- Liquidity and capital are important, especially for high-growth companies … taking a down round might be necessary for survival