Why a Surge in IPOs Could Pose a New Threat to U.S. Stocks

The video discusses the potential market valuation changes due to IPOs, particularly focusing on unicorns like Uber. It examines the dilution effect on the market, the role of venture capital, and the shift in market dynamics over the past years. The discussion highlights the challenges of market entry for these companies, considering the current market structure dominated by passive investing. It also touches on the potential impact of government shutdowns on IPO processes and future market predictions.

What is the estimated total deal value of IPOs in the US for this year according to Goldman Sachs?

• $150 billion

• $100 billion

• $80 billion

• $50 billion

Why are companies like Uber staying private for longer periods?

• Insufficient funding from venture capital

• Availability of ample funding in venture capital and credit markets

• Lack of interest from public investors

• Regulatory challenges in going public

How has the market structure changed in recent years?

• Decrease in the number of ETFs

• Rise of passive investing taking more market share

• Increase in individual investors subscribing to IPOs

• Growth of active management over passive investing

What is a potential reason some companies might not go public?

• High costs associated with IPOs

• Lack of interest from early investors

• Alternative ways for early investors to cash out

• Regulatory restrictions

What is a current issue affecting the IPO process?

• High market volatility

• Government shutdown affecting the SEC

• Lack of investor interest

• Increased competition among IPOs