How Reddit's IPO helped investors and employees

Chasing the IPO dream? You might spend twice as many years for the same check. 💸 $80M in 6 months. That’s what solo founder Maor Shlomo pulled off with Base44. He bootstrapped and sold to Wix just half a year after launching! This got us thinking: in recent exits, how many dollars made their way to founders and employees, versus investors? Here’s what the last 20 'headline' VC-backed exits told us: Average paper value to common stock shareholders at exit? - IPO: $3.0B - M&A: $3.0B Average time to exit? - IPO: 12.7 years - M&A: 7.4 years I cheer for a big IPO just as much as the next person. But if your common stock ends up in the same place, why not get there faster? 🕵 The analysis: 1. We looked at the last 10 IPOs and 10 M&As with exit valuations over $1B for VC-backed companies. The sample size is small and not definitive, but it offers an interesting snapshot of recent outcomes. 2. We estimated the percentage ownership of common shareholders at exit using a combination of PitchBook data and our own Caplight. We’re not including price action post-IPO, which is meaningful for recent IPOs. 3. We multiplied estimated ownership by exit valuations, assuming no liquidation preference overhang or restructuring. This may overstate common holder proceeds in some M&A exits. Some standouts: - Wiz exited via M&A at a $32B valuation — just 5 years in. - CoreWeave IPO’d after 8 years, reaching a $23B valuation — the second-fastest IPO on the list. - ServiceTitan took nearly 18 years to IPO at $7.6B. - Windsurf sold to OpenAI for $3B in under 4 years. VCs optimize for IRR. Founders and early teams? You’re optimizing for life ROI! M&A exits may not come with the same confetti cannon as IPOs. And giving up control of your company is no small tradeoff. But lately, they’ve been getting you paid faster. When life-changing outcomes are close for you and your team, that time difference is worth considering. Shoutout Juan Pablo Villafuerte for this analysis. #privatemarkets #venturecapital #MergersAquisitions #founders #startupliquidity #IPO #preIPO #data Disclaimer: This communication is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities or investment products. All investments carry risk, and you may lose some or all of your investment. Consult with your financial advisor or an investment professional before making any investment decisions. Past performance is not indicative of future returns.

Website Link Below: https://lnkd.in/dvU5xUdR Liquidation preferences can make or break your exit as a startup founder. In this video, we break down what liquidation preferences are, the difference between participating vs. non-participating preferences, and how they affect founder equity and investor payouts during a company sale, merger, or IPO. We’ll cover: What liquidation preferences actually mean 1x vs 2x liquidation preference (with examples) Participating vs non-participating preferences How preference stacks work across multiple funding rounds Why valuation caps, convertible notes, and investor terms matter Regional trends (US vs Europe vs Asia) Tips for negotiating founder-friendly terms If you're raising capital or preparing for an exit, understanding liquidation preferences is non-negotiable. Learn how to protect your equity and negotiate better terms with this Firstbase funding guide. #LiquidationPreference #StartupFunding #Firstbase #ConvertibleNotes #SAFE #VentureCapital #StartupInvesting #FounderTips #StartupExitStrategy #EquityFinancing #PreferenceStack #CapTable #SeriesA #SeriesB #StartupGrowth #FundraisingStrategy #TermSheet #InvestorTerms

Do pre-seed, seed and early stage companies need to waste any time at all becoming and/or maintaining themselves in an "acquisition-ready" state? Nearly 70% of M&A in B2B SaaS consists of the acquisition of pre-seed, seed and early stage VC backed companies. This includes strategic buyers, PE-buyers, and PE-backed-company buyers. The number of publicly traded companies in the US has not increased in OVER 10 YEARS! There are 75,000 VC and PE backed companies in the US. That is a 5X increase in the last 10 years. What percent of those 75K will IPO this ever? Approximately 0.25%. Only slightly better odds than buying a lottery ticket. Is your pre-seed, seed or early stage venture-backed company acquisition-ready? Find out here: https://lnkd.in/erkaJ8w9

One of the reasons why the VC Model is broken (More in my newsletter in the comments) The Time Horizon Mismatch Traditional VC Model: VCs expect 7-10 year fund cycles with clear exit opportunities through IPOs or acquisitions. Real-Life Reality: Companies are staying private longer (average time to IPO increased from 4 years in 1999 to 11+ years today), IPO markets are increasingly volatile, and acquisition multiples have compressed significantly. Meanwhile, LPs are demanding returns faster than ever. The Break: Fund managers are stuck holding illiquid positions in companies that can't exit, creating a liquidity crisis that forces premature decisions and suboptimal outcomes. #venturecapital #vc #startups

📢 AceVector IPO in Short: Snapdeal's parent company . . . . . . . Follow FintraEd Stock Market Institute for more #AceVectorIPO #SnapdealIPO #IPO2025 #StockMarketIndia #FinanceReels #MarketUpdate #IndianStartups #UpcomingIPO

You can buy before the IPO. But you can't sell the moment it lists. SEBI mandates a 1-year lock-in period for SME IPOs and a 6-month lock-in period for Mainboard IPOs, which catches many first-time investors off guard. 📌 No instant liquidity 📌 No quick flips 📌 No exceptions for HNIs, employees, or early backers Before you invest in any unlisted startup share understand this rule. It's the difference between planned gains and unexpected frustration. 📖 Save this post for when you're evaluating your next Pre-IPO deal. #UnlistedShares #PreIPO #SEBIRules

#TheLatium 190 IPO Journey: From Startup to IPO with Gareth Richardson and Laksh Gangwani #IPO #GoingPublic #StartupLife #BusinessGrowth #FinanceTips #IPOReady #BusinessStrategy #CompanyCulture #FinancialPlanning #EntrepreneurTips

💡 Liquidity beyond IPOs: As venture-backed exits stall, VCs are getting creative to deliver returns to LPs. From continuation funds to strip sales, preferred equity deals, and tender offers, liquidity strategies are evolving fast. 🔍 Dive into how firms like Lightspeed and Dynamo Ventures are navigating this shift, and what it means for LPs, founders, and the secondary market. 🔗 Read the full story: https://lnkd.in/gG4J3fBs

𝐈𝐧𝐝𝐢𝐚’𝐬 𝐈𝐏𝐎 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐬 𝐩𝐢𝐜𝐤𝐢𝐧𝐠 𝐮𝐩 𝐩𝐚𝐜𝐞 𝐚𝐠𝐚𝐢𝐧. After a quiet start to 2025, July could see $2.4 billion in fresh listings — the highest since December. And with over 143 IPOs in the pipeline (worth $26 billion), the momentum might just be getting started. From Credila to NSDL, here’s a breakdown of what’s driving this IPO revival, and what’s still uncertain. 👉 Follow Enlightened Post Official for no-fluff, research-led insights on markets, business, and what’s shaping the economy. . #IPO #IndianStockMarket #StartupFunding #FinanceNews #StockMarket #IPOWatch #EnlightenedPost #InvestmentTrends #IndianEconomy #BusinessNews #Credila #NSDL

Founders: Not every exit ends on Wall Street. Some end across the street — in a Trade Sale. At CapRunner, we break down the real exit strategies founders take — not just the headline IPOs. The jargon, decoded: Trade Sale = When your company gets acquired by another company in your industry — usually for strategic reasons like tech, talent, or market share. Think: BigCo buys you to go faster Your product fills a gap in their roadmap They’d rather buy than build What it means for YOU: Trade sales can mean: Faster exits Fewer public-market headaches A home for your team + product But they also mean alignment — your story has to fit their strategy. So don’t just build for users. Build something a bigger player might need. #TradeSale #StartupExits #MergersAndAcquisitions #FounderTips #CapRunner #StrategicBuyout #VC101 #ExitStrategy