The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Chime IPO: The Breakdown | Why Fund Returners Are Not Enough & Seed is for Suckers | Are IPOs Dead & The Future of the Late Stage Private Market | Rippling vs. Deel Lawsuit: WTF Happens Now?
98 snips
May 22, 2025 Chime's recent IPO announcement raises questions about who benefits and who doesn't. They dive into the surprising loophole making Chime's business model stand out against giants like JP Morgan. Investors' sentiments about impending liquidity events take center stage. The future of IPOs is scrutinized, with challenges identified for private companies. Legal challenges in the tech world, such as the Rippling vs. Deel lawsuit, are unpacked. The potential shift of OpenAI from nonprofit to for-profit status hints at the changing landscape of AI in business.
AI Snips
Chapters
Transcript
Episode notes
Chime IPO Price Protection Insight
- Chime IPO's valuation drop is mostly offset for early investors by price protection clauses in their investment terms.
- Late-stage investors often get adjusted share counts to protect them from overpaying, mitigating much of the risk of public market price declines.
Late-Stage IPO Decisions Varied
- Companies with over a billion in revenues now face real choices to IPO or stay private amid good market reception.
- Financial service firms like Klarna benefit more from going public than tech firms like Stripe due to access to capital needs and cost structures.
Know When To Sell Unicorns
- Venture success depends on picking and holding onto a few top-performing companies while selling lesser ones.
- At about $2 billion valuation, consider selling unless absolutely sure of outsized future growth.