With 2023 set to be the worst year for global IPOs since the Financial Crisis, Greg Martin, managing director at Rainmaker Securities, joins BNN Bloomberg to discuss his expectations for 2024. He adds there are some big names going public including car rental app Turo.
Improbable has sold The Multiplayer Group, a multiplayer games services company it bought in 2019, to Keywords Studios for £76.5 million ($97.1 million).
Herman Narula, Improbable’s CEO, told CNBC the transaction is part of its “venture builder” strategy, through which it invests in or acquires teams with the option to expand them or spin them out.
The deal to sell MPG, one of Improbable’s many notable bets on gaming, arrives after a series of struggles at the firm.
Narula said he expects to see a “tale of two metaverses” emerge in 2024, where centralized experiences such as Roblox and Fortnite are eschewed in favor of decentralized, “Web3″ versions.
Metaverse company Improbable has sold one of its key gaming ventures to London-listed video game developer Keywords Studios for £76.5 million ($97.1 million).
Several private companies are thinking about going public in 2024, including Chinese fast-fashion retailer Shein and Kim Kardashian's SKIMS shapewear brand. Although investors had high hopes for offerings in 2023, the IPO market fell short of expectations.
Rainmaker Securities Managing Director Greg Martin and EquityZen Head of Business Development & Partnerships Brianne Lynch sit down with Yahoo Finance Live to discuss sentiment on the IPO market heading into 2024 after this year's performance.
OpenAI has been through a rollercoaster ride, first ousting CEO Sam Altman, who then agreed to join Microsoft (MSFT), only for the AI startup to announce that Altman was going to rejoin the company with most of its board having been replaced. OpenAI is set to go through with a share sale that values the company at about $86 billion. But how are investors feeling about the company?
RainMaker Group Holdings Managing Partner Glen Anderson tells Yahoo Finance Live that "the 'buy OpenAI at any price' bid is gone. Sentiment has changed. Investors have a more cautious and pragmatic approach to the stock now."
Anderson says "OpenAI might be the first company to come up with a genuinely useful generative AI product but tech is littered with cases of first movers that lose in the long-run...there are other options to play AI in the market... We've seen sizable investor interest, for example, in Anthropic, Cohere, Databricks and others. The point is there is multiple ways to play AI, with Sam coming back, OpenAI may resurge but investors shouldn't fall in love with one stock." Watch Video
Greg Martin, managing director at Rainmaker Securities, joins BNN Bloomberg to discuss the probability of OpenAI having an IPO on the horizon. Martin says there are some regulatory challenges ahead. However, he expects an IPO on its future. He also discusses Canadian startup Cohere and its likelihood of going public. Watch Video
Investor interest in OpenAI shares on the secondary market has gone from a feeding frenzy to a near standstill as prospective buyers wait for news following the surprise termination of CEO Sam Altman.
Buyer interest in OpenAI stock totaling around $100 million all but evaporated between Thursday and Monday, according to Javier Avalos, CEO of secondary trading platform Caplight.
"Buyers are running for the hills," said Glen Anderson, president of Rainmaker, a bank that trades pre-IPO shares. Anderson added, however, that the dip in investor interest may be temporary, as secondary investors await future developments… Read Full Article
IPO spinoff talk is swirling around Starlink, the SpaceX-owned satellite internet constellation.
Citing people with knowledge of the matter, Bloomberg reports that Starlink could be spun off via IPO by late 2024. Last week billionaire investor Ron Baron — the founder, chief executive officer and portfolio manager at Baron Capital — told CNBC that he expects a Starlink IPO could happen around 2027, with SpaceX worth around $250 billion to $300 billion by that time.
SpaceX has not yet responded to a request for comment on possible Starlink IPO plans…Read Full Article
It’s quiet out there in IPO land — very quiet.
This is it: the weeks before Thanksgiving usually bring a spate of large IPOs eager to go public before the holiday season starts.
“Whatever you are going to get between now and the end of the year should be happening right now,” Don Short, head of venture equity at InvestX, told me.
Except, nothing is happening… Read Full Article
Raising a combined $6.5 billion, three of this year’s biggest US tech listings — Arm Holdings Plc, Klaviyo Inc., and Instacart — face crucial earnings tests this week after lackluster starts for their shares.
The trio will be looking to restore investor faith with their first results since going public over a one-week stretch in September. While newly-listed firms typically give reliable guidance to investment banks to help set fair valuations and leave room to impress, a miss could batter the stocks given investors’ willingness to dump perceived losers.
“If you don’t beat your expectations the first few results you’ll be put in the penalty box for quite some time,” said Greg Martin, co-founder of Rainmaker Securities. “You absolutely have to make sure you make your first — and really second — quarter expectations, otherwise you could be in a world of trouble.” … Read Full Article
Anthropic develops general A.I. systems and large language models. Greg Martin discusses the role of generative A.I. in big tech and the importance of risking valuation for Anthropic and OpenAI. He talks about how Anthropic received a $2B investment from Alphabet (GOOGL) last week which continues the trend of how big tech and PE/VC investors have embraced generative A.I. He goes over generative A.I. trends investors should be watching. OpenAI is an A.I. research and deployment company, as well as the creator of ChatGPT. Martin notes that OpenAI’s value has tripled over its last round of valuation. Tune in to find out more about the stock market today.
Why have wealthy investors surged as the leading buy-side participants in this market segment?
When Mark Zuckerberg launched Facebook, he likely didn’t expect that it would bring about a revolution in the way investors invest. As the social media phenom readied itself for IPO in 2012, both institutional investors and sophisticated individual investors identified the opportunity to access the steepest part of Facebook’s growth curve and began buying shares from early employees and investors prior to the IPO. The vibrant market for Facebook shares was a watershed moment, establishing a new market for actively trading private securities, albeit ones with high barriers to entry and distinct sets of challenges…
Stocks waver after inflation data surprise, Fed minutes: Stock Market Today | October 11, 2023
Greg Martin, managing director at Rainmaker Securities joins BNN Bloomberg to discuss Birkenstock IPO. With a 250-year-old legacy,the German footwear maker could face challenges due to consumer discretionary headwinds, according to Martin. He adds Birkenstock could be compared to Crocs or Allbirds once it goes public. Martin notes the company has seen nice, steady growth in the last decade.
Just when things seemed quiet on the Initial Public Offering (IPO) front, Arm caused some market excitement with its recent listing and then Instacart and Klaviyo followed suit.
Strong debuts could be enough to thaw some of the IPO freeze seen in the last 18 months. Year-to-date, there have been 84 traditional IPOs, that's according to Dealogic. In 2021, however, global markets delivered 2,682 IPOs raising $608bn (£500.54bn), including 459 IPOs in EMEA, raising $99bn. Read Full Article
Bankers and investors are optimistic that a string of initial public offerings will cap off a quiet year for new issuance before things accelerate in 2024.
That’s the consensus across Wall Street after a flurry of deals on US exchanges positioned September to be the biggest month for IPO fundraising since the market essentially shut in January 2022, according to data compiled by Bloomberg. Even though Arm Holdings Plc and Instacart stumbled in the days following their debuts, their recent stability is giving confidence to firms in the country — and around the world — that have been waiting for their chance.
“If a stable rate environment persists then 2023 will bring the establishment of a solid IPO market and 2024 could open the floodgates,” said Rainmaker Securities managing director Greg Martin. Read Full Article...
US companies that went public in September have raised around $7.2 billion, representing 56% of the total capital raised in global initial public offerings (IPOs) during the month. According to market experts, the rebound in market activity could hint at a significant IPO boom in 2024, assuming that interest rates will not keep rising anymore.
Arm, Instacart, and Klavyio Raised $6.5B in September
The US IPO market witnessed notable signs of resurgence in September, turning it into the biggest month for IPO fundraising since January 2022, Bloomberg reported on Wednesday…Read Full Article
Arm's (ARM) stock skyrocketed in its opening day on the Nasdaq Thursday. But IPO experts warn that the British chipmaker's debut on the public markets isn't indicative of how other newly listed companies may perform.
Arm, a formerly public company, was taken private by SoftBank in 2016. The well-established chip designer says it powers 99% of premium smartphones.
"It's a licensing business model with mid-90s gross profit margins," Greg Martin, a managing director at middle-market investment bank Rainmaker Securities, told Yahoo Finance Live. "So it's a very different company. And I think we have to be careful about drawing insights ... The next few new issuances are more likely truly representative of whether there's a real reopening of the IPO market." Read Full Article...
Arm Holdings (ARM) is making its IPO debut on the Nasdaq (^IXIC) on Thursday, September 14th. What does Arm's debut mean for the IPO market and for the future of the company? Rainmaker Securities Managing Director Greg Martin joins Yahoo Finance Live anchor Julie Hyman and Brad Smith to discuss. "We have to be careful about framing Arm as an IPO signal — it's a one-on-one company, it’s already been a public company," Martin cautions on investor hype directed at the IPO market. "So, you know, it's not a true new issuer." He also notes new issuances like Klaviyo, Instacart (CART), and Turo are more "truly representative of whether there's a real reopening of the IPO market." "The biggest uncertainty and the biggest area for concern… is 'is this going to power... future AI chip designs?'" Martin speculates on Arm’s growth outlook and liquidation risks from its majority stakeholder SoftBank
Arm has gone public in the biggest IPO of the year at a valuation hovering around $65 billion. Greg Martin of Rainmaker Securities joins "Bloomberg Markets" to discuss investor appetite for another major tech player in the AI race. Plus, Antoine Colaço, managing partner at Valor Capital Group, explains why his venture capital firm is leaning into climate tech investments. (Source: Bloomberg)
Greg Martin, co-founder of Rainmaker Securities -- which specializes in initial public offerings and private-market securities -- says the run-up in interest rates has changed the risk profile of potential buyers, and makes it harder for new projects to draw the dollars if all conditions aren't nearly perfect. He also talks about the SPAC market -- which he calls a 'house of cards' and a Ponzi scheme -- and how companies that want access to the public markets have to change in order to attract those dollars now…
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