BG2Pod with Brad Gerstner and Bill Gurley Ep7. The Great IPO Debate, Tesla Robotaxi vs. Uber, & Tech Check | BG2 with Bill Gurley & Brad Gerstner
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Apr 18, 2024 This conversation dives into the evolving landscape of IPOs, addressing the challenges and psychological barriers companies face when going public. The hosts compare Tesla's autonomous vehicle ambitions with Uber's ride-sharing model, dissecting the economics and operational hurdles both industries encounter. They also discuss how companies are harnessing AI and data to achieve greater efficiency and margin expansion, while exploring the shifting compensation trends in the tech sector amid a backdrop of workforce adjustments.
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Decline in Public Companies
- The number of public companies in the U.S. has decreased by over 40% in the last 20 years.
- This decline coincides with a period of increased innovation and startups, raising concerns.
Instacart's Valuation Journey
- Instacart's valuation journey exemplifies the challenges faced by companies funded at high valuations.
- It went public at a significantly lower valuation than its peak, but has performed well since.
Success of Smaller Public Companies
- Smaller companies like Hims & Hers and SoFi have performed well after going public, demonstrating that success is possible.
- This challenges the notion that companies need to be very large before an IPO.