Amplitude went public straight, started trading, and hit a wall when it reported Q2021 2022 earnings. prices remained. Now, Instacart is going through something similar, albeit in private markets.
Would you expect more private companies to also change the way they value their share price to better incentivize new employees to join and current employees to stay? It's possible. Jeff Richards from GGV made an apt comment regarding the situation:
You can't avoid the market. You can postpone reality by raising new venture capital and not see a price revision until the valuation rises again. Of course. But for late-stage unicorns that have enough cash, how do you calculate market value if no new funds are being raised?
Si Instacart It's the start of a trend Flat It really could be, the new trend when it comes to initial valuations.
