The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
20VC: Why the IPO Market is not Closed | Why Revenue Multiples are BS and Founders Need to Change | Advice From Jack Ma, Jamie Dimon and Evan Spiegel | Lessons from Taking Snap & Alibaba Public with Imran Khan
26 Aug 2024
Full Episode
I don't think IPO market is closed. I think the issue is companies don't want to go public because their expectations are too high. If you're building a company for a long period of time and you have a good business and you generate cash flow, you will create value. What is your IPO prices? It doesn't matter. I'm a big proponent that companies should go public earlier than later.
When you're going to a public market, you are building a new relationship with a new group of investors. I think any times you're trying to build a new relationship, my philosophy is give them more, give them a little bit more upside. So be it. No, revenue multiple is a BS multiple, right? Why would somebody give a shit about revenue multiple? I think the problem in M&A market is...
God, I love those intros. This is 20 VC with me, Harry Stebbings. Now, the core problem in venture today is liquidity, both from M&A and IPOs. The liquidity taps have turned off and LPs are screaming for liquidity. So today we sit down with the OG of IPOs, a man who's taken some of the biggest companies public from Alibaba to Snap. Imran Khan.
He was previously chief strategy officer at Snap, where under his leadership, Snap's annual revenue run rate increased to $1.6 billion from zero in less than four years. And he led Alibaba's $200 million investment into Snapchat.
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