. But with every good idea comes good competition which is head-scratching to some in the industry as to why so many private companies with great ideas do not tap the public markets sooner.<\/span><\/p>\nIn Blue Apron\u2019s case, and to their dismay, the competition came in the form of Amazon\u2019s acquisition of Whole Foods in the middle of the \u2018APRN\u2019 roadshow. I have no insight into Amazon\u2019s CEO, Jeff Bezos, and the \u201cpeculiar timing\u201d of the deal…but it almost seemed cruel to rain on Blue Apron\u2019s parade. <\/span><\/p>\nWho knows, maybe Blue Apron privately turned down an Amazon offer in the past and this was his \u201crevenge\u201d.<\/span><\/p>\nRegardless, the growth that looked great on paper started to, pardon the pun, not look so appetizing. Investors \u00a0began questioning the story, the plan and the future. <\/span><\/p>\nAnd this is where IPO underwriters and the company did the entire IPO market a service which proves public markets still have some sense of rationale. <\/span>The deal was slashed midweek from a range of $15.00-$17.00 to $10.00-$11.00 and ultimately priced at the low-end of that downwardly-revised range.<\/b> Institutional investors, hedge fund managers\u2026 real money\u2026 were able to dictate where they felt the deal needed to price and Blue Apron had no choice but to accept the offer.<\/span><\/p>\nAfter a roadshow that left Blue Apron badly bruised, the company opened flat but did manage to trade as high as $1.00 above the offering price on its debut day. However, the company traded below the offering price on day two. <\/span><\/p>\nIt should be noted that a technology company with similar revenue growth and mounting losses like Blue Apron, <\/span>Tintri, Inc. (Nasdaq: TNTR)<\/b>, also cut their price 30+% in order to appease IPO investors this week. That deal opened slightly higher and traded well during its Friday (6\/30) debut.<\/span><\/p>\nSo what\u2019s the takeaway from the Blue Apron story? Yes…companies that are private are likely a little nervous that they may have to do a \u2018down-round\u2019 to go public. The mere fact that companies have been able to regularly raise cash and increase private valuations with the assumption that the \u2018lottery ticket cashes later\u2019 is officially being proved false.<\/span><\/p>\nWe think IPO investors and the public markets are absolutely doing the right thing with these \u2018unicorns\u2019 with bloated valuations. Investors are properly evaluating the prospects and naming <\/span>their price. <\/span><\/i>Bottom line, the public markets are keeping a bubbly private mark in check.<\/span><\/p>\nSo, for our two-cents, the sky isn\u2019t falling — just maybe some absurd private valuations.<\/span><\/p>\n
\nNote: This article was published\u00a0for IPO Boutique’s\u00a0\u00a0July 2, 2017 newsletter<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"IPO Investors show discipline in pricing with Blue Apron \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0HIGHLIGHTS Correction won\u2019t be because of IPO market IPO investors dictated Blue Apron price Unicorn valuations are being kept in check \u201cDown-Rounds\u201d to go public are likely The IPO market ended the month of June with a jolt. Eight new companies went public. Many had mixed[…]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24],"tags":[1235],"class_list":["post-2539","post","type-post","status-publish","format-standard","hentry","category-ipo","tag-aprn"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=2539"}],"version-history":[{"count":2,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2539\/revisions"}],"predecessor-version":[{"id":2542,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/2539\/revisions\/2542"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=2539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=2539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=2539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/a><\/p>\n