With Caspers public offering earlier this week, weve closed the book on the first two venture-backed IPOs of note in 2020.
Casper, joined by One Medical, carried over $870 million of private capital, venture and otherwise, across the finish line.Even though each IPO featured an unprofitable tech-enabled business that had posted sub-30% growth and gross margins under 50% (far more, in the case of One Medical), they wound up miles apart in terms of their market reception and resulting valuation, measured in revenue multiples terms.So what can we learn from the two IPOs as we look ahead to other unicorn debuts in 2020? A great number of things that help set the stage for the rest of 2020s IPO class.
Lets discuss three observations that stick out the most.The surprise of the year so far has been the public markets reaction to One Medicals IPO.
The company, today worth $3.13 billion, is trading at 11.3x times the top end of its 2019 revenue projections (the company has yet to close the books on its Q4 accounting).