Bittersweet IPOs

Well, the Snowfalke IPO came and it didn’t disappoint. The stock closed at $253.93 which was over double the $120 IPO price. This IPO might hit #1 on the all-time IPO hype meter. There was a lot of bearish sentiment at this pricing which was set at over 100x revenue run rate.

It is overhyped and overvalued. But I think Snowflake is different than other overhyped companies lately (see Uber/Lyft) solely for the fact that it’s a pure tech play that is growing like a weed with a path to profitability in the next few years. I’ll still monitor for an entry point.

I did a Tweetstorm on a Snowflake case study from an employee’s standpoint in regards to stock options. Check it out here.

IPOs are always bittersweet. I get to meet some amazingly talented people over the years that help build these companies and I am beyond ecstatic to see them eventually cash in on their hard work. At the same time, it’s hard to watch how much money some people leave on the table in regards to their stock options.

We get to talk to a lot of people in regards to their equity and provide help, but the people we talk to are only a fraction of the employees out there. Days like today are ones that we celebrate but at the same time realize how much more work there is out there for us.