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Read by
BCG
500 Startups
Used at top MBA programs including
Stanford Graduate School of Business
University of Chicago Booth School of Business
Wharton School of the University of Pennsylvania
Kellogg School of Management at Northwestern University
Summary
  • Since Spotify broke new ground with a direct listing in 2018, followed by Slack in 2019, there has been growing interest among startups in the direct-listing option (vs. an IPO); one survey by The Information in Jul 2019 found that 34% of respondents with a potential IPO the following year were considering a direct listing.
  • On Oct 1, well-known venture capitalist Bill Gurley organized an invitation-only event on direct listings that was financially backed by 25 venture firms and attended by 100+ late-stage startup CEOs and 200+ CFOs/investors; the event caused a furor in the industry, re-energizing the conversation on direct listings.
  • Soon after, outlets reported that Airbnb is “laying the groundwork” for a direct listing in 2020, with a 70% likelihood.
  • Some industry watchers are saying we may see as many as 5 direct listings next year.
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