Comment by extraextra
21 hours ago
There weren't any size caps on IPOs and no regulation can tell a company what multiples to IPO at, that's just false information
If it was really "just an exit", people wouldn't buy the IPO and it would flop
Of course people believe there is room for more growth, that's why they are buying it
Even in this thread you can see people (not me) arguing that the IPO is too cheap and it's easily worth 3 trillion $ like numbers mean nothing
Possibly parent is thinking of https://en.wikipedia.org/wiki/Jumpstart_Our_Business_Startup... which did change some conditions, though not in terms of "multiples".
People participate in betting and chance games even if the odds are against them.
Sometimes, there is no logic behind what people do, ultimately hoping to strike gold once while wasting money otherwise.
If that's your interpretation of things, that there is no logic behind some of the smartest people in the world throwing tens of billions at Anthropic with no logic behind it, I have no further comments
A general statement I made is mostly to refute that people invest exclusively when the data is clearly supporting that investment with guaranteed returns: basically, the fact that people will buy does not mean that they have guaranteed returns.
Some might be looking to capitalize early and exit quickly; some are creating demand because they have other drivers in their portfolio (eg. Nvidia or Micron); some might really believe in the company; and some might be gambling with their disposable investment money for their high-risk/high-gain part of portfolio.
they were not forced but they were forced to report like a public company even if they didn't IPO. all the cost with none of the benefit was an incentive to IPO earlier.
No