We Co. Is the ‘Poster Child’ for a Disconnect in Private Valuation, Says Renaissance Capital’s Smith

The video discusses the current state of the IPO market, highlighting a recovery after a quiet summer. It addresses the disconnect between private valuations and public market sensibilities, using WeWork as a key example. The discussion covers the challenges faced by money-losing companies like Uber and Lyft, and the importance of profitability in investor decisions. Despite some IPO disappointments, the market shows signs of discipline and growth, with successful IPOs like Zoom and CrowdStrike. The video concludes with a focus on investor sentiment and the future outlook for IPOs.

What is one of the positive signs in the IPO market mentioned in the first section?

• Decrease in IPO prices

• Increase in IPO price ranges

• Reduction in the number of IPOs

• Stability in the IPO market

What is the main issue highlighted with WeWork in the second section?

• High public market valuations

• Strong profitability

• Disconnect between private and public valuations

• Successful IPO launch

Which companies are used as examples of money-losing entities in the second section?

• Chuy and Cloudflare

• Zoom Video and CrowdStrike

• Uber and Lyft

• Pinterest and Tradeweb

According to the third section, what are investors focusing on in the IPO market?

• Only market share

• Brand recognition

• Only growth

• Profitability prospects

Which sector is mentioned as having successful IPOs in the third section?

• Automotive

• Application software

• Retail

• Real estate