TechCrunch Startup News Forerunner’s long game: As startups stall before IPO, all options are on the table
Apr 16, 2025
Forerunner Ventures has shaped the landscape of consumer startups for over a decade. The discussion highlights how traditional IPOs are being re-evaluated, with brands like Warby Parker and Bonobos taking unconventional routes. There's an exploration of market dynamics that encourage strategic patience and innovation among investors. The podcast delves into the implications of these trends for the future of venture capital and evolving consumer behaviors, making it a pivotal moment for entrepreneurs.
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IPOs Are No Longer The Norm
- Many consumer startups avoid traditional IPOs and use alternative routes like SPACs or acquisitions.
- Investors and companies have adapted to fewer conventional public market exits.
Backing Growth Over Quick Exits
- Forerunner backed Chime, which filed for IPO, but Aura’s CEO states no IPO plans despite success.
- Kirsten Green supports focusing on growth over quick exits or sales.
Secondary Market Fuels Liquidity
- The secondary market enables liquidity and exposure beyond traditional IPOs.
- This market allows investors to unlock returns while companies take longer to grow big enough for public markets.