Andrew Glickman, Partner in Benesch’s Corporate Practice Group, was quoted in the Wall Street Journal discussing CoreWeave's recent IPO, which was priced lower than expected. The disappointing pricing has intensified concerns among venture capitalists about the state of the public markets. Market volatility, partly driven by global trade tensions, has made it difficult for startups to pursue IPOs confidently. While some investors remain optimistic about a market rebound, others are reassessing liquidity options beyond public listings, including private fundraising and secondary sales.
“Startups are also considering other paths to capital, such as raising money privately or conducting secondary sales so existing shareholders can cash out," said Glickman. He explained “companies go public mainly to raise cash and provide liquidity to investors. If you can do either of those things in other formats,” Glickman added, “it allows you to take a little bit of risk off the table in navigating the current landscape.”
To read the full article, click here: Post-CoreWeave, Venture Investors Rethink Their Outlook on IPOs - WSJ