Speaker 1: From Markhart of Where Innovation, Money and Power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed loved Love.
Speaker 3: Live from Bloomberg's World headquarters in New York and Caroline High.
Speaker 4: And I'm at Lovelow here in New York City. This
Speaker 4: is Bloomberg Technology.
Speaker 5: And coming up.
Speaker 3: We have full coverage of the Instacart. Ipo is the
Speaker 3: grocery delivery and software company. He gets ready to trade
Speaker 3: this hour. Much more ahead grus.
Speaker 4: Apple seeing bright spots in China as iPhone sell out
Speaker 4: within minutes of being released.
Speaker 3: I must speak with Eric Whitman, the incoming CEO of
Speaker 3: photo and video app Visco, get his outlook for the
Speaker 3: social media company. But of course we want to really
Speaker 3: be digging in in the hot news of the day.
Speaker 3: This is largely around an IPO story Instagart, of course,
Speaker 3: finally a VC backed company coming to the markets. We're
Speaker 3: anticipating that first trade. kJ roof is here, also anticipating
Speaker 3: oil sources waiting with weighted breath. Remind us as to
Speaker 3: whether or not making money on this, because we do
Speaker 3: know that the valuation is significantly lower than in the
Speaker 3: heyday of COVID for them, sure, I.
Speaker 1: Think, you know, it depends on when they invested. I mean,
Speaker 1: if you know anyone who just invested in the Round
Speaker 1: in twenty twenty one where they were valued at thirty
Speaker 1: nine billion, they're not making money yet, if ever, but
Speaker 1: the investors that invested very early, you know, when it
Speaker 1: was just a tiny startup, then certainly you know it's
Speaker 1: turned into a multi billion dollar company, and you know,
Speaker 1: early indications show that this company is probably going to
Speaker 1: pop a significant pop, maybe like thirty percent or more,
Speaker 1: and so that would put it at or above the
Speaker 1: thirteen billion dollar valuation that the company lowered itself to
Speaker 1: last year, it's internal valuation. So the company was aware
Speaker 1: of market conditions and market realities. They knew that, you know,
Speaker 1: thirteen billion was you know, a more reasonable target more.
Speaker 5: Than a decade old.
Speaker 3: This company since it's founding, and has changed the way
Speaker 3: in which it sort of strategizes moves forward, particularly under Fijisimo,
Speaker 3: the new CEO.
Speaker 5: I spoke with.
Speaker 3: Her and discussed sort of the era of competition, and
Speaker 3: it really does feel as though figc's everyone as a
Speaker 3: competitor in many ways. They fundamentally though, say they are
Speaker 3: uncontested market leader in grocery delivery, but they can continuing
Speaker 3: to really gain share. They're looking at strengthening, in particular
Speaker 3: the competitive advantages of ultimately advertising of software.
Speaker 5: Katie, how's this company pivoted under Fiji?
Speaker 6: Sure?
Speaker 1: Yeah, So many people think of them just from the
Speaker 1: consumer facing side where they receive groceries, but obviously if
Speaker 1: you look at their revenue, they have a lot of
Speaker 1: different revenue streams. They have software they you know, to
Speaker 1: help with fulfillment. They've really strength in their advertising business,
Speaker 1: which is you know, they have so much data about
Speaker 1: consumers and what they like to buy, which is really
Speaker 1: valuable for people trying to advertise groceries. So they've done
Speaker 1: a lot of different things. And also they have subscriptions
Speaker 1: so people pay more to be regular customers and Instacart
Speaker 1: and something that's been a little controversial sometimes they charge
Speaker 1: more per the price of the item than what you
Speaker 1: would pay in store. So they're collecting revenue from customers
Speaker 1: in a lot of different ways and particularly from business partners.
Speaker 3: Now I don't know if my household is different, but
Speaker 3: actually it's my husband who generally does the grocery order
Speaker 3: by instacrat from time to time, but I spoke with
Speaker 3: Fiji about what this means is a moment. Look, there
Speaker 3: are very few women bringing companies to IPO. It's also
Speaker 3: notable that she feels that a lot of her customers
Speaker 3: are women. Seventy percent of the shoppers are women. So
Speaker 3: it's really important, she says, to build the right product
Speaker 3: and the right voices at the table. She's really been
Speaker 3: trying to lean into the amount of executives a divert
Speaker 3: us leadership team that she has Katie, but took us
Speaker 3: through that team. And what this means for well, not
Speaker 3: the founder, but certainly a female CEO to bring a
Speaker 3: company to list when we see what less than one
Speaker 3: percent of all IPOs being led by women.
Speaker 1: Yes, certainly it's a very low number of newly public
Speaker 1: companies that are holmed by a woman.
Speaker 5: But yeah, she makes a good point.
Speaker 1: I mean, a large percentage of household budgets are controlled
Speaker 1: by women. So you look at who a lot of
Speaker 1: the people are that are buying groceries, it's women, and
Speaker 1: so certainly, you know, it helps to bring that perspective.
Speaker 5: But yeah, I.
Speaker 1: Mean, you know, she's the current CEO, she's someone who's
Speaker 1: very seasoned in the business world.
Speaker 5: She worked her.
Speaker 1: Way up at Facebook, being you know, one of one
Speaker 1: of the top executives there. So she's not some you know,
Speaker 1: junior person who didn't know what she was doing.
Speaker 5: She's you know.
Speaker 1: Already well respected in the tech world.
Speaker 3: A boy she wrote her advertising prowess to this particular business.
Speaker 3: Katie roof bringing us all the inside track on what
Speaker 3: is a VC unicorn finally listing after a couple of
Speaker 3: years hiatus. So let's get a little bit more on
Speaker 3: the world of IPOs and just talk to Nick Einhorn,
Speaker 3: his director of research over at re Naissance Capital.
Speaker 5: And we're on the trajectory. We've had ARM that popped.
Speaker 3: Yes, it seems to be rolling over somewhat now, but
Speaker 3: it wasn't BC backed. Now we get the likes of Instacart,
Speaker 3: then we look to a clavio.
Speaker 5: How important are these listings.
Speaker 7: Next, Yeah, they're definitely very important. It's really been two
Speaker 7: years with almost no tech IPOs, you know, one or two.
Speaker 7: Mobile Eye was a successful one last year, but these
Speaker 7: three deals in the last week are definitely a good
Speaker 7: barometer for the help of the tech iq market. And
Speaker 7: like you said, ARM has been public before. It's a
Speaker 7: very mature company. So it's really Instacart and Clavio that
Speaker 7: I think are the better indicator for where tech appetite
Speaker 7: is amongst investors right now.
Speaker 3: What do you make of the way in which this
Speaker 3: company has been listed? It was notable that they sort
Speaker 3: of priced on a Monday. That's not usual, but they
Speaker 3: really were trying to ride on the coattails. It felt like,
Speaker 3: of arm the fact that they've got a CFO who
Speaker 3: was at Goldman leading these sorts of issuances.
Speaker 5: We know that they're well.
Speaker 3: Navigating these sorts of markets, but the fact that we
Speaker 3: could get quite a big poppet seems like at.
Speaker 5: The original at the initial trade.
Speaker 3: Are they leading too much money on the table to
Speaker 3: have a successful IPO?
Speaker 7: I don't think so. I mean, we know we're in
Speaker 7: an environment where IQ market, the IP market has not
Speaker 7: been particularly strongly. We certainly there's a lot of caution
Speaker 7: out there in the department investors, and so I think
Speaker 7: they needed to convince investors that it was a good
Speaker 7: valuation that the stop was being positioned to trade well.
Speaker 7: They got the Cornerstone investors involved as well as the
Speaker 7: private placement from PepsiCo, so kind of a lot of
Speaker 7: things to sort of help make sure the deal is
Speaker 7: to success for investors. I think part of why go
Speaker 7: ahead just.
Speaker 5: A little bit about the competitive moat or lack thereof.
Speaker 3: Nick there's been some handwringing about really how much they
Speaker 3: can fight off not only some sort of frenemies, they're
Speaker 3: customers who might be building out their own e commerce plays.
Speaker 5: The fact that they are also seeing competitive elements from
Speaker 5: Amazon as well. Who is the key competitor for.
Speaker 7: Yeah, I think there's definitely a bunch of them. Amazon
Speaker 7: has one door Dash, I think is an interesting one.
Speaker 7: Obviously they're more folks than restaurant delivery, but they've been
Speaker 7: building a grocery business over the last few years and
Speaker 7: they've taken a lot of share and kind of smaller transactions,
Speaker 7: so more impulse buys versus the weekly shop. Instacart thinks
Speaker 7: they still have a good advantage over the kind of
Speaker 7: the weekly purchasing, but DoorDash is definitely a key competitor.
Speaker 7: And then the resellers themselves, especially Walmart some of the
Speaker 7: other big ones are definitely competitors, but instacart also works
Speaker 7: with them a lot of them on the back end technology,
Speaker 7: So instagrat I think is trying to kind of shore
Speaker 7: itself up there.
Speaker 4: Nick, What have you learned about the risk tolerance that
Speaker 4: technology investors have now the IPO window broadly is open,
Speaker 4: back it up.
Speaker 7: Yeah, I think there's definitely still some caution out there.
Speaker 7: We're not in the twenty twenty twenty twenty one mindset.
Speaker 7: But one indicator we look at is the Renaissance IPO Index,
Speaker 7: which is the underlying index for our ETF that tracks
Speaker 7: the IPO market, and that's of about thirty three percent
Speaker 7: year to date versus about seventeen percent for the US
Speaker 7: and P five hundred. So I've definitely seen some of
Speaker 7: that risk appetite come back into the space over the
Speaker 7: last year. It's still not where it was, but I
Speaker 7: think we're you know, we're in the right direction for
Speaker 7: ipoctivity to increase.
Speaker 4: There's a lot of excitement, right you know, there is
Speaker 4: some sort of IPO window back. And in the background
Speaker 4: you have the FED. We started talking about China, we
Speaker 4: started talking about the macro and the economy globally. How
Speaker 4: short lived do you think this IPO window is going
Speaker 4: to be?
Speaker 7: You know, I like to be optimistic. One indicator we
Speaker 7: look at a lot is the VIX, the volatility index,
Speaker 7: and that tends to signal whether ipactivity is increasing or decreasing,
Speaker 7: and that's been coming down this year. Generally it's in
Speaker 7: the teams now, I believe, so that's usually a good
Speaker 7: level for ipoctivity, but obviously a lot can change quickly,
Speaker 7: you know, Fingers crossed, we can maintain co activity going forward.
Speaker 5: Why getting renaissance capital on is so important for.
Speaker 3: Our viewers is because you are doing that hard work
Speaker 3: of pre IPO companies, bringing that research, that transparency. Who
Speaker 3: then are you waiting for? Who's waiting in the wings?
Speaker 3: When we think we get through this week of Instacart,
Speaker 3: of Klavio, is it on Taturo? Who are the other
Speaker 3: key names that you're going to be keeping and updating
Speaker 3: your research on.
Speaker 7: Yeah, Tiro updated their perspectives recently, so we think they're
Speaker 7: likely to come soon. Birkenstock filed a few weeks ago,
Speaker 7: obviously on a tech name, but a well known consumer name,
Speaker 7: following on from some successful consumer eCos in the summer.
Speaker 7: And then beyond that, there's a lot of companies that
Speaker 7: are waiting in the wings, probably looking to see how
Speaker 7: Instacart and clavi O do this week. You know, companies
Speaker 7: like everybody from Reddit, you know down the line, lots
Speaker 7: of tech companies, lots of companies and other industries. So
Speaker 7: we think there's definitely a big backlog. It's just a
Speaker 7: question of when they think conditions will be right.
Speaker 4: All right, Nick Iahorn, Renaissance Capital, thank you for you
Speaker 4: had time. I want to get a quick check on
Speaker 4: the markets because there's other stories out there driving individual names.
Speaker 4: When we're looking at is Block. Lisa Henry is leaving
Speaker 4: the company nine years at Block, she ran the Square business.
Speaker 4: Jack Dorsey, who is already at the head of Block
Speaker 4: and chairman of the board, is going to come in
Speaker 4: and run Square, and analysts saying they see that as
Speaker 4: a positive, even though it's a longtime leader leaving that
Speaker 4: company a stock that's not done well year today, Disney
Speaker 4: down almost four percent. They're doubling their CAPEX commitment for
Speaker 4: the Parks, Entertainment and Products division to sixty billion over
Speaker 4: a ten year period. They're going to be investing in
Speaker 4: the theme parts and cruise lines business. We're getting more
Speaker 4: insight into what Bob Eiger is doing now that he's
Speaker 4: back at Disney. What's the strategy that moving the stock
Speaker 4: lower and Amazon down two point eight percent. They've just
Speaker 4: announced they're hiring two hundred and fifty thousand seasonal workers
Speaker 4: for the holiday period, particularly in logistics. This is a
Speaker 4: company that ended the June quarter had one point four
Speaker 4: to six million employees, having actually cut back carrow as
Speaker 4: you know throughout the early parts of the year. That
Speaker 4: kind of weighing on the stock. It had been down
Speaker 4: anyway amid everything that's going on this week. And by
Speaker 4: the way, pick update on ARM. We're in its third
Speaker 4: trading session, fourth trading session now, and it's trading at
Speaker 4: fifty four dollars eighty cents. We're below the price where
Speaker 4: it opened on Thursday. Interesting how short lived that was
Speaker 4: in terms of the pop that we got and then
Speaker 4: the downward trajectory there after.
Speaker 3: Carro im a little profit taking, maybe a little still
Speaker 3: about that fifty one dollars were at price, but notable
Speaker 3: as we check on these other IPOs. But ed, I mean,
Speaker 3: we've got a wild story coming up for everyone because
Speaker 3: Microsoft has uploaded confidential documents to a federal court by mistake.
Speaker 5: It's all on that website. We'll have more and what
Speaker 5: they reveal that's next to this's a Bloomberg technology.
Speaker 4: Okay, time for some talking tech, and today we talk
Speaker 4: all things Microsoft, starting with its AI research team accidentally
Speaker 4: exposing a large cachet of private data on the software
Speaker 4: development platform give GitHub. That's according to a new research
Speaker 4: from a cybersecurity firm called Whiz. The exposed data included
Speaker 4: Microsoft employees, personal computer backups, secret keys, and more than
Speaker 4: thirty thousand internal Microsoft Teams messages. Plus Amazon's hiring Microsoft's
Speaker 4: product chief Panos Panai to run the division responsible for
Speaker 4: Alexa and Echo smart speakers. That according to Bloomberg sources,
Speaker 4: pana is almost twenty year veteran who led Microsoft Windows
Speaker 4: team and was central to the company's hardware push with
Speaker 4: its surface computers. And Microsoft plans to refresh the Xbox
Speaker 4: consoles in the holiday season of twenty twenty four. That's
Speaker 4: according to a products roadmap mistakenly posted online as part
Speaker 4: of its case against the FTC. The changes are improvements
Speaker 4: to power consumption, better wireless technologies and built in storage,
Speaker 4: and a physical redesign. This is one hell of a leak.
Speaker 4: Let's get more in it with Bloomberg Cecilia Deenastasio, who's
Speaker 4: with us in new York. Let's start with how on
Speaker 4: earth that information came to light?
Speaker 8: Thank you so much for having me. We are hearing
Speaker 8: that Microsoft accidentally leaked confidential documents about plans around new
Speaker 8: Xbox consoles, refreshed Xbox consoles as soon as twenty twenty four,
Speaker 8: upcoming games that have never been announced before, in a
Speaker 8: variety of things.
Speaker 5: Can we get to the bottom of how or who?
Speaker 5: Because there must be a lot of handwringing internally today.
Speaker 8: There's a lot of hand ringing internally today, especially because
Speaker 8: of the other leak that you readtest earlier bad week. Yes,
Speaker 8: our understanding at Bloomberg a source told us that it
Speaker 8: was not the FTC behind the leak, it was Microsoft.
Speaker 3: Okay, so Microsoft potentially some trying to trail back as
Speaker 3: to who and how?
Speaker 5: But does this happen often?
Speaker 3: Do we see these sorts of leaks and this sort
Speaker 3: of integral data that actually is very hard to find
Speaker 3: in terms of price points, in terms of ultimately ip
Speaker 3: that they're going to be a revealed.
Speaker 8: Gaming companies are famously very very secretive about upcoming plans
Speaker 8: around these things, and this is the biggest leak in
Speaker 8: Xbox history.
Speaker 4: It's fair to say Okay, I get it, there's a leak,
Speaker 4: leaks happen. The big news is we're getting a mid
Speaker 4: cycle Xbox console refresh, which just doesn't happen like and
Speaker 4: full discoasure. As Alreadien says, I'm a PS five guy
Speaker 4: right now, what do we know about this new Xbox?
Speaker 8: I have to say, personally, I'm shocked because in June
Speaker 8: Xbox head Phil Spencer told me that he didn't see
Speaker 8: an imperative to have a mid cycle refresh, and so
Speaker 8: we're kind of trying to reconcile.
Speaker 5: This competing information now.
Speaker 8: But it is typical for after four years a console
Speaker 8: to come out with a refresh that has increased storage,
Speaker 8: like you were saying, and things along those lines.
Speaker 4: So I guess bigger pictures. We did get some insight
Speaker 4: into Microsoft's video game strategy. What did we learn.
Speaker 8: We learned that Xbox is planning in mid cycle refresh
Speaker 8: as soon as twenty twenty four and a new console
Speaker 8: as soon as two thousand in twenty eight. Of course,
Speaker 8: these plans are subject to change, as everything in the
Speaker 8: gaming industry can be very volatile all the time. We
Speaker 8: learned about updates to beloved games, including from Bethesda, which
Speaker 8: is part of Xenomax, which Microsoft acquired as well. We
Speaker 8: learned about discussions around acquiring and Nintendo, which we knew
Speaker 8: that those discussions had happened. We didn't know that the
Speaker 8: board was interested as well until the recent weeks.
Speaker 3: This morning, I mean in is macro context where we're
Speaker 3: thinking of a federal reserve tomorrow, eyeing inflationary pressures. I'm
Speaker 3: interested that price points aren't going to be going up
Speaker 3: in my twenty twenty four it is.
Speaker 8: Surprising because the price points on video games have gone
Speaker 8: up from sixty dollars to seventy dollars. But consoles are
Speaker 8: you know, something that are there are a luxury items.
Speaker 8: They're very expensive, and especially when gaming PCs are becoming
Speaker 8: increasingly popular and eating up more and more of kind
Speaker 8: of what people would spend on consoles.
Speaker 5: You know, it makes sense, sense.
Speaker 4: Makes sense. Bloomberg Cecilia Diannastasio on set here in New York.
Speaker 4: Thank you know. Apple's iPhone fifteen is off to a
Speaker 4: strong start in China. The new iPhone sold out on
Speaker 4: China's team all within a minute of becoming available, according
Speaker 4: to the site's operator. For more, I'm going to bring
Speaker 4: a Bloomberg Intelligence senior tech analyst and a rag Rana
Speaker 4: and Arag you and I and Caroline have been talking
Speaker 4: about China for a week now. When it comes to Apple,
Speaker 4: what is your first impressions of how the next gen
Speaker 4: handsets doing.
Speaker 6: No, it's a good news.
Speaker 9: And as we have talked before, China is the biggest
Speaker 9: wildcard for Apple over.
Speaker 4: The next twelve months.
Speaker 6: So any news like this is good news for Apple.
Speaker 9: There's iPhone sales, which do you know, all of us
Speaker 9: know will dictate Apple's over all financial performance in the neodom.
Speaker 4: So in the June quarter, Apple went from a three
Speaker 4: percent year one year decline to an eight percent hotline growth.
Speaker 4: And what Tim Cook said was it with switches, and
Speaker 4: my understanding of switches, it's somebody buying an iPhone for
Speaker 4: the first time or transferring from a domestic brand. How
Speaker 4: do you see the technology upgrades on this next gen
Speaker 4: iPhone fifteen being a part of that switching story.
Speaker 9: Yeah, I mean our analysts in Asia already told me
Speaker 9: a while ago that the camera upgrade is such a
Speaker 9: big deal that it's going to drive a lot of
Speaker 9: enthusiasts to go out and get the Promacs model, which
Speaker 9: is what excited us most during the event that actually
Speaker 9: the pricing for that went up, So overall, I think
Speaker 9: this is a good thing because people are upgrading for
Speaker 9: the new camera. It's going to drive ASP's, it's going
Speaker 9: to drive new units, So I think it's good news
Speaker 9: for Apple at.
Speaker 3: This point, aer can you line up where you take
Speaker 3: the most signals from when, particularly when it comes to China,
Speaker 3: we're all trying to read those tea LEAs at the moment,
Speaker 3: and yes, we've got team all they're selling out within
Speaker 3: a minute or so.
Speaker 5: But then Barklays is saying.
Speaker 3: Early pre order data from China continues to point to
Speaker 3: difficult iPhone fifteen cycle negative mix shift.
Speaker 5: Where do you go for the signals that are the
Speaker 5: right read so, you know.
Speaker 9: One of the things you have to think about. I
Speaker 9: think about it from Apple's point of view. They do
Speaker 9: want to ship these things if there are are orders.
Speaker 9: So when we look at lead times and we track
Speaker 9: it every day, you know, sometimes it's very difficult to
Speaker 9: say whether it is because of the changing mixshift of
Speaker 9: the model with some supply issues, or is it just
Speaker 9: a demand. I think this is why we need several
Speaker 9: more weeks of data before we can you know, comfortably
Speaker 9: say that apples sales are going to be healthy over
Speaker 9: the next twelve months because December quarter is the big
Speaker 9: quarter for you know, all consumer electronics and apples, you know,
Speaker 9: no different there.
Speaker 3: Yeah, augustantly overweight price target two hundred and fifteen. They
Speaker 3: two are saying that actually the China day points are
Speaker 3: better than expected. So we try to dissect where to
Speaker 3: get the real takeaway. Can you update a little bit
Speaker 3: on your warries and risks around China? It felt like
Speaker 3: the narrative of last week after their event, what then
Speaker 3: of now are you getting any more signals on just
Speaker 3: the sturdiness of consumer and indeed government purchases.
Speaker 9: Yeah, I think Mark Gouman, you know really, you know,
Speaker 9: I talk to him about it, and it really one
Speaker 9: of the things you have to remember that last time
Speaker 9: something like this happened was increased rise of nationalism in China.
Speaker 9: It did have a negative impact on Apple. So we
Speaker 9: just want to make sure that because what the government
Speaker 9: said for you know, the government falls, which is not
Speaker 9: new news, it's been around for a while, but it
Speaker 9: was splashed around quite a bit that it didn't change
Speaker 9: the consumer behavior, and so far it looks like things
Speaker 9: are on track for Apple, but again we need a
Speaker 9: lot more data to be comfortable for the next financial year.
Speaker 4: You know, just reflecting on being at Cubatino last week,
Speaker 4: and there was a lot of emphasis on the color
Speaker 4: selection for the Pro, the higher EnPro and Promax because
Speaker 4: in China, red and gold resonate with the consumer. We
Speaker 4: didn't get that. But the Chinese consumer also tends to
Speaker 4: favor the latest technology, you know, powerful processing, next generation camera.
Speaker 4: In your analysis, Anak, do you see a differentiation between
Speaker 4: consumer behaviors in North America, Europe, China?
Speaker 9: Oh, it's massive behavior. I mean, gold Wild do really
Speaker 9: well in India, Middle East. I mean, I can you know,
Speaker 9: think of a few more countries. You know, I personally
Speaker 9: I'm going to get the blue one next on Friday,
Speaker 9: but I know a lot of people who would want
Speaker 9: the red and the gold.
Speaker 3: If anyone wants to know, I would definitely be a
Speaker 3: gold kind of a gal. But I then go and
Speaker 3: buy a really ugly, clunky thing to cover.
Speaker 5: It all up so that I don't broke it.
Speaker 3: Ara Rana, thank you enjoy your blue version Bloomberg Intelligence.
Speaker 3: And I mean ed the fact that you just said
Speaker 3: it's a week ago. Oh, just over that your own Kupertino.
Speaker 3: Time just flies. But this really was the purpose point
Speaker 3: that we were hearing from Apple. So the new unveil
Speaker 3: and as to whether or not, it seems as though
Speaker 3: the mixed signals are pointing.
Speaker 5: That it is a positive.
Speaker 4: It's why going over the technology so important. You know.
Speaker 4: The story was the Chinese government saying to government agencies
Speaker 4: and state enterprises, tell your staff to leave their iPhone
Speaker 4: at home. Get a Chinese brand. With that impact the
Speaker 4: psychology of the Chinese consumer at large, Well, that's what
Speaker 4: we just talked about. No, they like color preferences, they
Speaker 4: want the latest technology five years data tell us.
Speaker 5: That, so foldable phones.
Speaker 3: There's a great piece on the terminal about the lack
Speaker 3: of foldable coming from up Yeah, it was funny.
Speaker 4: So when we're in Google I earlier in the year,
Speaker 4: they came out with pixel fold and they had really
Speaker 4: high compute and then we started talking about running AI
Speaker 4: generative AI locally on devices. For me, it's just a
Speaker 4: feel in the hand thing, you know, clunkiness of folding
Speaker 4: the phone. But maybe that resonates in China too.
Speaker 3: And we know that the price point resonates in China
Speaker 3: also resonates for the bottom line and the fact that
Speaker 3: this is going to be driving up average selling prices,
Speaker 3: so certainly some price targets still on the high side
Speaker 3: for Apple well combat to bluemot technology. I'm Caroline had
Speaker 3: in neil my.
Speaker 4: Med love Loo in San Francisco. If we're not you're here,
Speaker 4: Oh my goodness, how how did I get here? Let's
Speaker 4: move on quickly and cover that with markets. Na's that
Speaker 4: one hundred tech leading losses in public markets. Remember, the
Speaker 4: FED makes its decision in twenty four hours time. Widely
Speaker 4: expected to hold rates follow rates because they discount the
Speaker 4: future values of present cashloads the other way round. But
Speaker 4: also if your private market investor and you're looking at
Speaker 4: public proxies, if you're paying attention as well Bitcoin, as
Speaker 4: you've been discussing in the past week, Caroline continues to
Speaker 4: kind of march a little bit higher despite the risk
Speaker 4: of sentiment that we are seeing. But look at yields
Speaker 4: creep higher as well. I think all eyes on the
Speaker 4: FED despite what's happening in other areas of the public markets.
Speaker 3: In the tech sector, Yeah, we've got to go micro
Speaker 3: as all eyes on one particular IPO today we're awaiting
Speaker 3: where at trades instacart our own Sinalibus suckers, of course.
Speaker 5: Keeping your breast to where we're going to be going.
Speaker 5: From a price pat it looks like it's going to pop. Yes,
Speaker 5: we are waiting for it to open.
Speaker 10: And then it's indicated to price around forty two dollars
Speaker 10: a share. That makes it more than a forty percent
Speaker 10: pop if it makes it at the open. It also
Speaker 10: gives it a valuation upon the open at about fourteen
Speaker 10: billion dollars that is not only above where it expected
Speaker 10: to be valued at out of the gate, it also
Speaker 10: is above it's a most recent funding round when it
Speaker 10: was valued and slashed its own internal valuation to closer
Speaker 10: to thirteen billion dollars. And so Pondie Ipo Pop, you
Speaker 10: are getting a little bit of boosted valuation. It still,
Speaker 10: as we've been talking about, a far cry from that
Speaker 10: thirty nine billion dollar valuation that it was able to
Speaker 10: inc in the heydays of the pandemic for Instacart when
Speaker 10: a lot of people were using the delivery app. Now
Speaker 10: I know you and I will talk about this later,
Speaker 10: but the cell that Instacart might have as an AI
Speaker 10: focused company, it doesn't even meet what you would get
Speaker 10: from Klavio as well, that is pitching the same type
Speaker 10: of idea here and is expected to price tonight. In
Speaker 10: Instacart's wake. You had also Klavio up their IPO pricing
Speaker 10: range as well. Let's see if they're able to meet that,
Speaker 10: especially because the markets they're meeting are a little more
Speaker 10: muted than the markets we saw last week that ARM
Speaker 10: had listed into.
Speaker 3: Yeah, it's interesting that ARM is coming off of those
Speaker 3: previous highs.
Speaker 5: But ARMS big cell.
Speaker 3: It's an artificial intelligence empowering company. And I actually spoke
Speaker 3: to Fijisimo about really the AI pitch that she's trying
Speaker 3: to take to the investor at the moment, and she's saying, look,
Speaker 3: with generative AI in particular, really big opportunity to make
Speaker 3: the grocery even more convenient. We have all the data,
Speaker 3: they've got the expertise that making that experience happen. But
Speaker 3: look it does take time, Shanali. But that's sort of
Speaker 3: their mode, isn't it. The fact that they've got this
Speaker 3: proprietary data that others aren't going to be able to have.
Speaker 3: That's going to be a tough sell though. To remind
Speaker 3: people to go with them over the competition, particularly not
Speaker 3: only for an investor that's institutional, but a retail investor
Speaker 3: that they're pitching to right now.
Speaker 10: Yeah, it's a great question, and you're talking about the
Speaker 10: retail investor. Remember this is the first IPO underwritten by
Speaker 10: so Far, which is one of the secondary underwriters in
Speaker 10: this particular ipo. We've seen so Far, for example, serve
Speaker 10: as an allocator to almost a dozen IPOs besides this one.
Speaker 10: But to the point you're making, this is the idea
Speaker 10: of bringing more retail interest in as far as the
Speaker 10: moat goes. You're right, they are pitching their own data
Speaker 10: as it pertains to and their client base here. But
Speaker 10: there is a general concern about what the margins for
Speaker 10: this business looks like, and how fast they can keep
Speaker 10: diversifying bringing in kind of that ad money as well,
Speaker 10: and what the broader economic environment looks like. Throughout the
Speaker 10: programming today, we've been talking about how much the consumer
Speaker 10: can come under pressure with some of these inflationary forces.
Speaker 10: Still at the fore, I would say Instacart Playbo hitting
Speaker 10: the market right before that big bed decision. Timing is
Speaker 10: everything in the IPO market. And remember we do have
Speaker 10: a scenario here in which even with the market flat
Speaker 10: to lower for the SAP five hundred Nasdaq and the
Speaker 10: SOCK Semiconductor Index, you still.
Speaker 5: Have these IPO pops.
Speaker 10: It just tells you how much is that steak here
Speaker 10: for investors who want a play at new shares as
Speaker 10: well as remember the question at beginning all day, who wins?
Speaker 10: Think about Sequoia D one, which will still have a
Speaker 10: very significant stake in this post IPO, as well as
Speaker 10: some of the founders themselves of these large investment firms
Speaker 10: Dan Sundeim personally, we'll have a steak in Instacart out
Speaker 10: of the listing.
Speaker 3: Well said, I mean, we're looking at the ticking higher
Speaker 3: in terms of the indication price now at forty two
Speaker 3: dollars sixty one Shinali. The fact that they have like
Speaker 3: arm taken that playbook of having a lot of intentional
Speaker 3: investors who are going to be sticking around taking a
Speaker 3: huge amount. I think about two thirds of the overall
Speaker 3: shares that are going on offer already been allocated to
Speaker 3: some of these lynchpin investors, the Petsicos of this world.
Speaker 3: What did you make of that sort of new tactic
Speaker 3: that we have going on Yeah, it's interesting limiting.
Speaker 10: The flow, drumming up interests, PepsiCo being involved from the beginning.
Speaker 10: Clavio has a different set of cornerstone investors, more along
Speaker 10: the lines of the investment community, the lines of an alliance.
Speaker 10: Bernstein involved early on. But there seems to be the
Speaker 10: Goldman Sacks playbook, doesn't it. They are leading this round
Speaker 10: of IPOs. They were one of the lead underwriters on ARM,
Speaker 10: they are lead on the Instacart, they are lead on Klavio.
Speaker 10: It is a big moment for Goldman Sacks in this
Speaker 10: wave of tech listings, Instacart, CFO as well. We know
Speaker 10: had that Goldman sax Alma mater that expertise over there
Speaker 10: in terms of what it means to take a company public,
Speaker 10: especially in the world of TMT, technology, media and telecom.
Speaker 10: That's also, by the way, the relationship that brought in
Speaker 10: so far with Anthony Nodo formerly in that world at
Speaker 10: Goldman Sachs as well. The new kids in town are
Speaker 10: David Ludwig, who leads Global Equity capital Markets over at
Speaker 10: Goldman Sachs. Kem Posnett, who recently took over as head
Speaker 10: of TMT at Goldman Sachs. Big moments for them, Armor
Speaker 10: was of success. Instacart is looking like it's about to
Speaker 10: be more than forty percent of a pop on day
Speaker 10: one even in a down market and Claveyo tonight trifecta.
Speaker 3: I mean yeah, all eyes on Nick Giovanni, who's going
Speaker 3: to be waiting with baited breath. Of course, the CFO
Speaker 3: of in Stacat, who is overheading DMT globally for Goldman
Speaker 3: up until twenty twenty on Shanali. Always so great to
Speaker 3: get your perspective when it comes to the ins and
Speaker 3: outs of what's happening on Wall Street and the people
Speaker 3: behind these sorts of deals.
Speaker 5: We also know that people that have been backing these.
Speaker 3: Sorts of deals are of course the bench capital community.
Speaker 3: And let's time therefore dig into VC Spotlight. We're taking
Speaker 3: a look at well overall the IPO pipeline, the excite
Speaker 3: that breeds for certain players such as M thirteen. And
Speaker 3: we've got the General Partner joining us about some of
Speaker 3: the areas they've been allocating to of late. Latif peruccha
Speaker 3: In leads the firms investing strategy focusing on digital health,
Speaker 3: particular on fintech, you've got what nine hundred million dollars
Speaker 3: in assets under management and just for a moment, the IPO,
Speaker 3: the excitement, the exuberance of some companies that are VC
Speaker 3: backed becoming public.
Speaker 5: What does that mean when you're writing a series A check.
Speaker 11: Thanks Caroline, thanks Ed for having me on. It's incredibly exciting.
Speaker 11: I mean to unlock the IPO markets really then unlocks
Speaker 11: the growth market, which as an early stage investor, ultimately
Speaker 11: that's what we're looking for. And there's Instacart, Clavios tonight,
Speaker 11: and then we think there's a significant pipeline of really
Speaker 11: great companies that will unlock after that. So it's very
Speaker 11: exciting and the best companies go public and so we
Speaker 11: are always as vcs investing in early stage looking for
Speaker 11: those generational companies to go IPM.
Speaker 4: Is it really that much of a domino effect? So
Speaker 4: you see several companies go public. If you are a
Speaker 4: startups done series ABCD through M, does that open up
Speaker 4: the opportunity then for you to do a big growth
Speaker 4: stage round because there's more money going into public markets
Speaker 4: as well.
Speaker 11: It all trickles from the public market, and so the
Speaker 11: growth investors that fund our companies need to return capital
Speaker 11: to their investors. We all have to return capital to
Speaker 11: our investors. And the way that the momentum will work
Speaker 11: is for the IPOs that will start to unmarck, they'll
Speaker 11: start to return capital, and then they can invest that
Speaker 11: new fresh funds into our companies, which is going to
Speaker 11: be required ultimately to get them to the scale that
Speaker 11: a clavier or Instacra is today.
Speaker 4: I'm fascinated by valuations at all end of the curve
Speaker 4: for startups. You know, those names that have gone public
Speaker 4: in this past week really emphasized artificial intelligence as if
Speaker 4: it was going to help them out. Is the same
Speaker 4: thing happening at the other end in early stage where
Speaker 4: you attach AI to your domain name, your valuation goes up.
Speaker 11: That happens, and we're very sensitive to that as a firm.
Speaker 11: You know, we really believe in hype cycles and being
Speaker 11: very sensitive to where we are in high cycles. But
Speaker 11: high cycles can be a good thing in AI. You know,
Speaker 11: it allows for boardroom conversations and budgets to open up,
Speaker 11: and that can really help our companies. But we're very
Speaker 11: sensitive to the valuations that early stage companies can attach
Speaker 11: and making sure that the founders that are building these
Speaker 11: companies really have domain expertise in AI and have a
Speaker 11: clear path to show how the AI is going to
Speaker 11: enable some product or service that can service and customers.
Speaker 3: And everyone's been trying to push that forward, like where
Speaker 3: is the disruption coming? Which industry groups legal clear healthcare
Speaker 3: has been time and time again referenced.
Speaker 5: Is that something that you're focusing in on.
Speaker 11: Yeah, it's a big focus for our firm and for
Speaker 11: me personally. If you look at healthcare in this country,
Speaker 11: it's four trillion to spend nearly twenty percent of GDP
Speaker 11: and I think we're really still in the very early
Speaker 11: days of the digital transformation. So we've at the firm
Speaker 11: invested in really innovative care delivery models around new areas
Speaker 11: of medicine like form which is a market leader, and obesity,
Speaker 11: and we've spent a lot of time now focusing in
Speaker 11: on how can you use AI to really support clinicians
Speaker 11: and health systems to drive better care and ultimately better
Speaker 11: outcomes for patients. And that's really always our end goal
Speaker 11: is how can you deliver better outcomes and simultaneously rip
Speaker 11: costs out of the system.
Speaker 3: I mean, we had a VC on from underscoore VC
Speaker 3: yesterday based in Boston. We're thinking of Fujisimo and her
Speaker 3: team and Instacart celebrating in San Francisco today. Doesn't matter
Speaker 3: where these founders, where these businesses are being cultivated, being born,
Speaker 3: how are you getting access to all of them?
Speaker 11: Founders can be built, you know, anywhere. We will go
Speaker 11: anywhere to find the best founders. Ultimately, what we're focused
Speaker 11: on is founders that have real domain expertise. And so
Speaker 11: I'd love to give you an example of a company
Speaker 11: we just announced called kar Gnostics, which is providing localized
Speaker 11: AI for health systems and so it ingests the healthcare
Speaker 11: data healthcare system am I doing so it's able to
Speaker 11: detect diseases much earlier. So of the four trillion of
Speaker 11: spend in the US, ninety percent of it is because
Speaker 11: chronic diseases go undiagnosed. And so they've shown and have
Speaker 11: great data to show that chronic kidney disease, for example,
Speaker 11: they can identify three times a number of patients. They
Speaker 11: can identify twenty times the number of asthma patients much
Speaker 11: earlier on. And this can really drive tremendous you know,
Speaker 11: health spans and lifespans for patients, and that to us
Speaker 11: is really really critical.
Speaker 6: So we'll go anywhere.
Speaker 11: But ultimately, in the case of this company, the CEO
Speaker 11: is based in Philadelphia. So I took this the short
Speaker 11: train ride over and sat down, and you know, we
Speaker 11: did a deal in that company. The founder, we think
Speaker 11: is a leading a expert in the world.
Speaker 4: All right, and thirteen in general, passa latif pratcha, thank
Speaker 4: you so much. Coming up here on bloom Big Technology,
Speaker 4: how one company is helping other businesses better adapt to
Speaker 4: the work from home model. My goodness, we have a
Speaker 4: debate coming up. We'll talk to you vendor Bill, the
Speaker 4: see of remote that's next. This is Bloomberg Technology. It's
Speaker 4: breaking news. Crossing the Bloomberg terminal, Clavy Oh is said
Speaker 4: to plan to sell IPO shares for twenty nine dollars
Speaker 4: or more. Believe the range have been twenty seven to
Speaker 4: twenty nine, boosted up from twenty five to twenty seven
Speaker 4: twenty four hours ago. A lot of twenties. But what
Speaker 4: Bloomberg's reporting is Clavio said to plan to sell its
Speaker 4: IPO shares for twenty nine dollars or more. That is
Speaker 4: the one that we're waiting for Wednesday. A lot more
Speaker 4: going on before then, but we'll keep tracking the latest
Speaker 4: on that listing now back to Bloomberg Technology is the
Speaker 4: worst of the pandemics. Of sides, the debates over working
Speaker 4: from home have gained more traction, with many workers wanting
Speaker 4: to stay home for various reasons, while many CEOs want
Speaker 4: them back in the office. In the past week, the
Speaker 4: number of US workers that have returned to the office
Speaker 4: jumped fifty percent from pre pandemic levels. Where human resources
Speaker 4: platforms like remote come in interesting name Today is launching
Speaker 4: its global HR platform to assist companies with hiring management
Speaker 4: and joining us from San Francisco is its CEO, Van Dervolt.
Speaker 4: Thank you for joining us here in Blue met Technology.
Speaker 4: I want to start with the debate. You're kind of
Speaker 4: pinning the company on this future where hybrid work at
Speaker 4: least or remote work continues. Why do you have such
Speaker 4: faith in that model?
Speaker 6: Well, first of all, thank you for having me.
Speaker 12: It's not so much that we think about whether people
Speaker 12: are working from home or working remotely. It's more that
Speaker 12: what we see is that moredern businesses they hire people
Speaker 12: from everywhere. It's very hard to find great people in
Speaker 12: the director insanity of your office, and what we see
Speaker 12: is that more and more businesses start to look for
Speaker 12: talent internationally, and so that's really where we focus at
Speaker 12: and that's what we help facilitate companies to find people
Speaker 12: hire people truly anywhere.
Speaker 4: So this platform you've announced, it's intended to help companies
Speaker 4: with staff in multiple jurisdictions, not just companies, but all
Speaker 4: over the world. Why is that needed? Why was there
Speaker 4: a gap in the market for that.
Speaker 12: So up until now, we would help companies hire people abroad,
Speaker 12: and this was usually a small number of people is
Speaker 12: what is called.
Speaker 6: An employer record.
Speaker 12: And as we've grown, what we realized is that many
Speaker 12: of these companies ended up having multiple SQS offices in
Speaker 12: different countries, and what they had to do to be
Speaker 12: able to support all of those is hire or a
Speaker 12: bunch of people locally and buy a whole bunch of
Speaker 12: software and.
Speaker 6: Then try to hook it up together.
Speaker 12: Now we've built this international infrastructure to actually make sure
Speaker 12: that you can stay compliant, and we've made it into
Speaker 12: a single platform, so rather than having five tools for
Speaker 12: five different countries, now you.
Speaker 6: Can do all of it with us directly.
Speaker 5: It feels like a competitive space. I was just speaking
Speaker 5: with the deal founder.
Speaker 3: You're remote, what are the various offerings at the moment,
Speaker 3: particularly coming from some really well backed VC backed startups.
Speaker 3: Right now.
Speaker 12: I mean for us, we focus on compliance first, and
Speaker 12: that is how we build our platform, and it means
Speaker 12: that we run pay well for you regardless of how
Speaker 12: somebody is employed, whether it's through us, through your own entity.
Speaker 12: We can help your payout contractors, but above all, we
Speaker 12: help you maintain compliance across the world.
Speaker 6: In your team. So that means that we can help
Speaker 6: you on board people.
Speaker 12: Also off board people, help them with conversation and really
Speaker 12: everything that comes with hiring somebody in any place.
Speaker 6: In the planet.
Speaker 3: Let's talk about any place on the planet, because we
Speaker 3: know that there has been prior to perhaps the current slowdown,
Speaker 3: ferocious talent wars. Now then people start to let people go,
Speaker 3: and what became abundantly clear was it's harder to let
Speaker 3: go of certain employees in certain regions. I'm thinking of
Speaker 3: our home area of Europe at the moment. How is
Speaker 3: that factoring into how people are starting to rehire, particularly
Speaker 3: when it comes to the area of AI. There is
Speaker 3: expertise in France, but it's also quite hard to let
Speaker 3: go of workers there. How does that factor into some
Speaker 3: of your client's perspective.
Speaker 6: That's absolutely true.
Speaker 12: I think one of the things that we try to
Speaker 12: do is help inform our customers what is the trade
Speaker 12: off you want to hire somebody great in.
Speaker 6: Friends, Well, this is what you have to think about.
Speaker 12: The way I think about it is that if you
Speaker 12: are committed to hire somebody, you take into account that
Speaker 12: it might cost a bit more if you end up
Speaker 12: having to let the person go. But at the same time,
Speaker 12: that individual gets significantly more protections and it's much less
Speaker 12: likely to leave you as an employer.
Speaker 6: And so there's an ups and the downs to either situation.
Speaker 12: But above all, we believe that companies ultimately want to
Speaker 12: hire great people and we will facilitate that no matter
Speaker 12: where they are.
Speaker 6: Yeh.
Speaker 4: We started the segment talking about the data we have
Speaker 4: for return to office. What does the data you have
Speaker 4: tell you about the movement of people back to office spaces.
Speaker 12: Well, in our case, the one thing that we really
Speaker 12: look at is whether companies are hiring more internationally. So
Speaker 12: we don't really know if people are working from an
Speaker 12: office or where they're working from home or anywhere else.
Speaker 12: But what we do see is that people hire companies
Speaker 12: hire more and more internationally. And that trend continues to grow,
Speaker 12: especially as certain roles are in very high demand, like
Speaker 12: for example, AI researchers. Well you're going to hire it
Speaker 12: them no matter where they are, and dead strength continues
Speaker 12: to expand and at market continues to grow very much.
Speaker 5: You're great to have some time with you.
Speaker 3: Thank you your fand of Wuerte is CEO of Remote Meanwhile,
Speaker 3: coming up, so many more executive discussions to have. So
Speaker 3: we actually have some breaking news as well because instacart
Speaker 3: has started trading at forty two dollars a share. Remember
Speaker 3: they priced their shares at thirty dollars a share, so
Speaker 3: now we have a poper in excess of some forty percent,
Speaker 3: So forty two dollars a share in your opening trade.
Speaker 5: When it comes to the parent company that is Maplebear, of.
Speaker 3: Course is what they've chose when the name to still
Speaker 3: stick with, but is of course Instacart. And we do
Speaker 3: see overall that this is a company that's managing to
Speaker 3: have a significant rise on the opening trade. It's taken
Speaker 3: a fair few hours, and of course it always does,
Speaker 3: but forty percent on the nose, we're currently up thirty
Speaker 3: nine percent, as you see in the first trade, and
Speaker 3: very pleased to say we've got one. Abigail Doolittle has
Speaker 3: been standing by waiting for this moment, and boy, it's
Speaker 3: even bigger tick higher than we had for ARMED in
Speaker 3: previous week.
Speaker 13: Yeah, it's very impressive, Caroline. Indeed, we have the shares
Speaker 13: of Instacart trading hire by thirty nine percent right now,
Speaker 13: so we're looking at evaluation that is closer to fourteen billion.
Speaker 13: It had been priced, of course, at thirty dollars a share,
Speaker 13: which would have been a roughly ten billion dollar valuation,
Speaker 13: So a very strong opening of forty two percent at
Speaker 13: this point. And they of course raised six hundred and
Speaker 13: sixty million dollars and they've sold twenty two million shares,
Speaker 13: fourteen point one million going to the company and then
Speaker 13: seven point nine million going to other investors such as
Speaker 13: Tiger and Co too, So you can imagine that some
Speaker 13: of these investors are really pretty happy now. It is
Speaker 13: interesting though, of course, the twenty twenty one valuation thirty
Speaker 13: nine billion dollars. But the Instacart or excuse me, the
Speaker 13: IPO window that was opened last week by ARM seems
Speaker 13: to be successful right now for Instacart and then TenneT
Speaker 13: of course, for klave Yow, and then there's other filings
Speaker 13: out there such as Birkenstock. One big question will of
Speaker 13: course be technology next year. This is really important, especially
Speaker 13: since rates are still high. It puts pressure on some
Speaker 13: of these high growth issues. Now, one thing I would
Speaker 13: note that you and Ed have noted all hour is
Speaker 13: the fact that ARM opened very strong, up twenty five percent,
Speaker 13: but in the three days that have followed down about
Speaker 13: five percent each day. It'll be interesting to see whether
Speaker 13: or not this one can hold on to its gains.
Speaker 13: It's also interesting, Caroline to note the fact that back
Speaker 13: during the pandemic, during the big IPO, I don't know
Speaker 13: if Bubble is correct, but you had Bumble, you had
Speaker 13: Airbnb and some of those other names popping eighty ninety
Speaker 13: percent on the day.
Speaker 5: So not quite there.
Speaker 13: But nonetheless, given the fact that this is the second
Speaker 13: big IPO of this year, up thirty nine percent, not
Speaker 13: so shabby.
Speaker 5: At all eleven billion.
Speaker 3: Now we have it currently at a market capitalization. Abigail
Speaker 3: did a little thank you. Let's come out to Shanali
Speaker 3: Bassett because boy Nick Giovanni CFO is going to be
Speaker 3: pleased with a way in which that seems to be
Speaker 3: stated for the opening trade, But what do they need
Speaker 3: to do to ensure this demand was there?
Speaker 5: They really curtailed supply. They had locked in cornerstone investors.
Speaker 10: Yeah, locking in those investors was a key to the
Speaker 10: success of this IPO, as we know for arm as well,
Speaker 10: and as we know Clayvio coming tonight has done a
Speaker 10: similar thing in terms of locking in those big names
Speaker 10: early on.
Speaker 5: Now when we look at.
Speaker 10: The trading today, still it was able to achieve that
Speaker 10: forty percent pop, even as it increased its pricing range
Speaker 10: in the days leading up to the IPO, as well
Speaker 10: as selling at the top end of that range. As
Speaker 10: we were talking here in the last thirty even as
Speaker 10: we found that Klavio as well may seek to price
Speaker 10: at the high end of the range or even higher,
Speaker 10: and so you're seeing excitement coming into these stocks early on.
Speaker 10: We know that these big cornerstone investors played a key
Speaker 10: role in the IPOs, but we also know that retail
Speaker 10: investors are also playing a very key role in these
Speaker 10: first day pops. You look at the NAVDAC trading last
Speaker 10: week and you look at the likes of Fidelity and
Speaker 10: just how many orders came in the day of when
Speaker 10: it came from the retail flow, and you think about
Speaker 10: the role of Sofi as well, also led by former
Speaker 10: Golden banker Anthony Noo, and they are the underrat for
Speaker 10: the first time, putting capital up play for an IPO
Speaker 10: in the Instacart listing. Now again they are front rating
Speaker 10: some economic events the FED decision tomorrow. Clavio also looking
Speaker 10: ahead to get any potent get ahead of any potential
Speaker 10: volatility in the market. But what an interesting data list.
Speaker 10: Even with the SMP down, the Nasdaq down, the nas
Speaker 10: like one hundred and composite, the Socks Semiconductor Index down,
Speaker 10: you are getting a forty percent pop at the opening
Speaker 10: trade for instacart as well as more excitement around future
Speaker 10: IPOs to the point you're making more in the pipeline.
Speaker 10: Birkenstock's also looking to go public. A lot of these
Speaker 10: companies with the AI play looking to also go public.
Speaker 10: Our sources telling us people trying to really front load
Speaker 10: those IPOs into the first quarter of next year, trying
Speaker 10: to really capitalize on all of this investor interest that.
Speaker 3: Is coming into new Stock and ahead of any political
Speaker 3: disruptions that might come as we look towards an election
Speaker 3: as well. Shananli Massak fantastic to get the ins and outs.
Speaker 3: I want to give context because context is everything, and
Speaker 3: Jackie Davlos has that for us, because you've been following
Speaker 3: instacart four years and it's interesting. I look back to
Speaker 3: a press release that was in twenty twenty when the
Speaker 3: company weighed six hundred million backed by D one Capital
Speaker 3: Partner is out of valuation to seven point six billion.
Speaker 3: Today they raised six or sixty million, with evaluation about
Speaker 3: eleven million.
Speaker 5: And they go public. It's been a long old road, Jackie.
Speaker 2: It's been over ten years in the making. As a startup.
Speaker 2: Instacart raised nearly three billion dollars from huge investors Fidelity,
Speaker 2: D One, Tiger, and since then they've really matured as
Speaker 2: a business. But let's kind of take a step back.
Speaker 2: Before Fijisimo took the helm a few years ago, the
Speaker 2: business was run by a poor Vametto who had really
Speaker 2: placed the consumer facing app at the forefront of the business.
Speaker 2: And it got a major tailwind with the pandemic people
Speaker 2: ordering online. But that couldn't stick around forever. You had
Speaker 2: competition rolling in from Uber and door Dash, other bigger players,
Speaker 2: Walmart starting its own delivery business, Amazon trying to kind
Speaker 2: of get into the play, and so you had the
Speaker 2: business really getting pressure by an investors in the market
Speaker 2: broadly to really diversify its revenue streams. And when Fijisimo
Speaker 2: came in, as you remember, she was a former meta
Speaker 2: Facebook executive who really built that monetization strategy incorporate advertising,
Speaker 2: and it was no different when she came into Instackhart
Speaker 2: really built out that revenue stream and from one of
Speaker 2: the things that we learned from the s one that
Speaker 2: advertising revenue now accounts for thirty percent of its overall
Speaker 2: revenue and it's going to be incredibly important. So this
Speaker 2: IPO is not just about showing, look, we're giving some
Speaker 2: liquidity back to our employees, but this is the business
Speaker 2: that's now matured and what they have to offer going forward.
Speaker 5: Jackie devlos Well said, context changes everything.
Speaker 3: Meanwhile, of course I am noting that the context is
Speaker 3: this is a female bringing an IPO. Less than one
Speaker 3: percent of IPOs are brought by women.
Speaker 5: Now, I know.
Speaker 3: Fijisimos we thought of as a leader. It doesn't matter
Speaker 3: that whether she's female whatever. But of course, well for
Speaker 3: some it's worth noting from.
Speaker 5: New York verty to say that that does for this
Speaker 5: edition of Blueberg Technology.
Speaker 6: ED.
Speaker 4: Yeah, don't forget. Recap the show on our podcast. You
Speaker 4: can find it wherever you get yours, Terminal, Spotify, iHeart,
Speaker 4: and Apple. This it's Blueberg Technology.