> the company has a private post-money valuation of $10B and then IPOs to a stable $10B market cap.
If that’s the case, and they issue 100M new shares on IPO, then the IPO is effectively a serious “down round” that halves the value of all shareholders pre-IPO.
More realistically would be that the post-money valuation after IPO is $20B or more.
If that’s the case, and they issue 100M new shares on IPO, then the IPO is effectively a serious “down round” that halves the value of all shareholders pre-IPO.
More realistically would be that the post-money valuation after IPO is $20B or more.