What Does Lyft’s IPO Mean For Other Unicorns Waiting To Go Public?
March 28, 2019 | Blog

What Does Lyft’s IPO Mean For Other Unicorns Waiting To Go Public?

2019 is shaping up to be the year for unicorn IPOs. Uber, Lyft, Pinterest, Slack, and Postmates are among those private companies valued at $1 billion or higher that have already filed registration documents with the Securities and Exchange Commission, confidentially or otherwise. Those companies alone represent over $100 billion in private value expected to come to public markets.

Last Private Valuation
Source: SharesPost Research; Pitchbook

Unicorns represent a unique asset class for potential investors. Though these companies boast large market caps, they still need to convince investors that they can sustain their high growth rates and limit their typically significant losses.

Lyft will go public Friday and will likely set tone for others. After a three-month drought in unicorn IPOs, partially because of the government shutdown, Lyft’s IPO will likely serve as a litmus test to see how the public markets value these high growth/high risk firms.

If we follow the signals, things look promising for Lyft. Reuters reported last week Lyft’s IPO was already oversubscribed after only two days on its roadshow. This high demand suggests two things: Lyft’s final IPO valuation could exceed the upper-range $23 billion implied in its latest S-1 amended filings, and investors demand for late-stage tech companies seems robust.

We’ll continue to monitor Lyft as the company completes its journey to becoming a public company this week. But the story certainly won’t end Friday as Lyft’s IPO performance will likely impact other unicorns edging towards an IPO.

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This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.