The fees investment banks charge to underwrite IPOs can gobble several points from a public company’s gross proceeds, but new competition is giving some firms a chance to hold on to more of that sweet debut money.
This week, Nubank paid just 1.6% of theIn this morning’s edition of The Exchange, Anna Heim and Alex Wilhelm compared Nubank’s savings to DoorDash, which didn’t set aside any shares for underwriters in its November 2020 IPO.
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They found several contributing factors, including increased global competition, a desire to attract more retail investors and, yes, SPACs. This is indubitably “good news for startups” as stock exchanges in different time zones offer more places where startups can list (or double-list) their shares, write Alex and Anna. “Could it also be a sign of some of the changes we are planning to track in 2022?” I’ll be off on Tuesday, December 21, but we’ll return with a very comprehensive newsletter on Friday, December 24. Thanks very much for reading, and have a great week. Walter Thompson Senior Editor, TechCrunch+ @yourprotagonist
1.3 billion, boosting the company to a $10 billion valuation. This week, the user-generated community revealed that it had filed confidentially to go public.
“You know what that means,” wrote Alex Wilhelm. “It’s time to ask questions.”
While he awaits its S-1 with a sharpened scalpel, Alex shared initial questions about the social hub’s operations, specifically:
“We’re curious about content moderation costs, product expansion, the company’s revenue mix, how frequently governments come up in the filing, and what the unicorn has to say about crypto.”
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This week, Nubank paid just 1.6% of the
Full TechCrunch+ articles are only available to members Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription
They found several contributing factors, including increased global competition, a desire to attract more retail investors and, yes, SPACs. This is indubitably “good news for startups” as stock exchanges in different time zones offer more places where startups can list (or double-list) their shares, write Alex and Anna. “Could it also be a sign of some of the changes we are planning to track in 2022?” I’ll be off on Tuesday, December 21, but we’ll return with a very comprehensive newsletter on Friday, December 24. Thanks very much for reading, and have a great week. Walter Thompson Senior Editor, TechCrunch+ @yourprotagonist
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“You know what that means,” wrote Alex Wilhelm. “It’s time to ask questions.”
While he awaits its S-1 with a sharpened scalpel, Alex shared initial questions about the social hub’s operations, specifically:
“We’re curious about content moderation costs, product expansion, the company’s revenue mix, how frequently governments come up in the filing, and what the unicorn has to say about crypto.”