Instacart IPO Plans Show Comedown for Investors from Pandemic Highs

Sequoia Capital and Andreessen Horowitz invested in Instacart in 2021 at a $39B valuation, and Instacart plans to IPO at a $10B valuation.
Instacart saw massive growth during COVID in 2020-2021, but growth has slowed dramatically as the economy reopened.
Venture firms like Sequoia and Andreessen haven't seen big returns from IPOs recently amid the market downturn.
Sequoia and Andreessen invested early in Instacart at much lower valuations, so they will still see gains despite the lower IPO valuation.
Instacart's IPO could potentially renew investor enthusiasm for new tech IPOs amid the recent downturn.

cnbc.com

Relevant topic timeline:

9/11/2023

Instacart Plans $9.3B IPO in September, Significantly Below Last Valuation

Instacart aims for a valuation of up to $9.3 billion in its upcoming IPO, a significant decrease from its previous funding round, with cornerstone investors agreeing to buy up to $400 million worth of shares.

9/17/2023

Stocks Fall Despite Europe's Gains as Investors Remain Cautious Ahead of Fed Meeting, Disney Mulls Selling Assets Signaling Shift Away from Traditional TV

U.S. stocks slumped amid mixed sentiment about the economy, with only the Dow Jones Industrial Average rising for the week, while European markets and the euro ticked up slightly. Famed investor Ray Dalio advised traders to hold cash as Treasury yields climb, and venture firms Sequoia Capital and Andreessen Horowitz face a significant loss on their investment in Instacart. Disney's potential sale of media assets signifies the end of traditional TV, and the Federal Reserve's meeting this week and FedEx's earnings announcement will provide insight into the global supply chain. U.S. consumer sentiment has edged down, but investors remain upbeat about the outlook for stocks and the economy.

9/18/2023

Markets Mixed Ahead of Fed Meeting; Instacart Prices IPO, Twitter Plans Subscription Model Amid Strikes and Uncertainty Over Rate Hikes

U.S. stocks remained stable as investors anticipated the outcome of the Federal Reserve's September meeting, while the pan-European Stoxx 600 index fell due to various negative factors including the departure of Lonza's CEO and Societe Generale's cost-cutting plans; in other news, Instacart priced its IPO at $30 per share, valuing the company at around $10 billion, and strikes in the U.S. have caused the highest number of lost labor hours in decades.

9/19/2023

Instacart Goes Public at $11B Valuation After Turning First Profit

Instacart begins trading at $42 per share, leading to a market valuation of over $11 billion, despite a significant drop from its previous valuation, as competition from Amazon and Walmart intensifies.

9/20/2023

Stocks on the Move: Instacart Falls, Steelcase Soars After Earnings Beat, Klaviyo Jumps in IPO, Bausch Up on Upgrade, Stellantis Gains on Europe Sales

Instacart shares fall after going public, Steelcase soars on strong earnings, Klaviyo jumps after IPO, Bausch Health surges on upgraded rating, Stellantis sees sales growth in Europe, Pinterest rallies on revenue growth expectations, Coty raises full-year outlook, Zebra Technologies downgraded, Textron signs deal with NetJets, Chewy downgraded on pet category weakness, and various other companies see stock movements.

9/20/2023

Instacart Stock Drops 13% After IPO As Competition Concerns Grow

Instacart's stock price is falling on its second day of trading as an analyst raises concerns about competitive pressures.

Topics

Posted 9/15/2023, 7:44:25 PM

Instacart IPO Plans Show Comedown for Investors from Pandemic Highs

Sequoia Capital and Andreessen Horowitz invested in Instacart in 2021 at a $39B valuation, and Instacart plans to IPO at a $10B valuation.
Instacart saw massive growth during COVID in 2020-2021, but growth has slowed dramatically as the economy reopened.
Venture firms like Sequoia and Andreessen haven't seen big returns from IPOs recently amid the market downturn.
Sequoia and Andreessen invested early in Instacart at much lower valuations, so they will still see gains despite the lower IPO valuation.
Instacart's IPO could potentially renew investor enthusiasm for new tech IPOs amid the recent downturn.

cnbc.com

Relevant topic timeline:

9/11/2023

Instacart Plans $9.3B IPO in September, Significantly Below Last Valuation

9/17/2023

Stocks Fall Despite Europe's Gains as Investors Remain Cautious Ahead of Fed Meeting, Disney Mulls Selling Assets Signaling Shift Away from Traditional TV

9/18/2023

Markets Mixed Ahead of Fed Meeting; Instacart Prices IPO, Twitter Plans Subscription Model Amid Strikes and Uncertainty Over Rate Hikes

9/19/2023

Instacart Goes Public at $11B Valuation After Turning First Profit

9/20/2023

Stocks on the Move: Instacart Falls, Steelcase Soars After Earnings Beat, Klaviyo Jumps in IPO, Bausch Up on Upgrade, Stellantis Gains on Europe Sales

9/20/2023

Instacart Stock Drops 13% After IPO As Competition Concerns Grow

Instacart's stock price is falling on its second day of trading as an analyst raises concerns about competitive pressures.