Snap IPO Shows Investor Appetite to Bet on Young Companies Again
- Bigger, older startups like Uber, Palantir are still private
- So-called unicorns have tapped heady private funding instead
Why Snap’s IPO Came at the Perfect Time
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If there’s one lesson Silicon Valley can learn from Snap Inc.’s trading debut, it’s that investors in initial public offerings are again willing to stomach the uncertainty of betting on hopeful, young companies.
While concerns still loom about growth and profitability at the maker of disappearing-photo app Snapchat, interest in the IPO is undeniable. After pricing the offering above the range at $17, the stock surged 44 percent in its debut and another 11 percent on its second day of trading to $27.09, valuing the company at more than $31 billion. Demand for the shares outpaced the number offered by a multiple of 10.