06/19/2021
Absolutely NOT. Whenever a company does an IPO, it’s valuation is already high. Also, initial VC investors try to receive as much capital as possible for the stake that they’re giving up.
There is a joke IPO = Imaginary Profit Observed or Insiders Profit Only.
There is always price correction after lock up period expires i.e. when a company goes public, there is usually a lockout period of 3-6 months for employee shares, typically stocks drop after the period is over.
Not everyone company that IPOs become Google. Having said that, if you truly believe in the company and it’s mission, then do invest after correction happens. Otherwise, it’s a tough choice without balance sheet/financial records/ cash flow etc.
Treat investing in new companies like a casino visit. Play with money you’re willing to loose.
Disclaimer: All opinions are personal, please use your own judgement before investing.
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