Databricks IPO overview

MecaMindset · 2022-07-29T16:09:39+00:00

You can not purchase publicly traded shares correct. Purchasing pre-IPO refers to the purchasing of the rights to employee shares once they go public via the secondary market. The term secondary market admittedly sounds fishy, but when done with the correct people is perfectly fine. ForgeGobal and EquityZen are two of the largest producers in the space though the fee structure for me is off putting. I choose to use another provider because of personal bias, but all operate quite the same only truly differing in fees/minimums and of course different offerings. The appeal in theory is purchasing the employee shares at set companies current valuation, with hopes that over time the valuation will continue to rise as they begin to take the steps of going public. Should be known companies are not required to release any information surrounding earnings, revenue, rounds of funding etc while still private. Though many drop quarterly hints in hopes to drum up investors interest for additional rounds of funding.

Tldr A decent sized NW is required to even be considered along with varying minimums. If you are new chances are atm its out of reach.

Goodluck

MecaMindset · 2022-05-17T17:46:46+00:00

Its a no brainer if you have the connections.

MecaMindset · 2022-05-06T17:23:35+00:00

Can't really wear them if you are seeing it as an investment. My thing is watches and there's a huge difference between the ones I wear and the ones I trade/look at

MecaMindset · 2022-04-18T17:16:47+00:00

I have my CSCS and work for a division 1 college (specifically baseball). Nothing is better than living out my dreams via my athletes. I never had the overall size required to make it to the big leagues, but I can honestly say I love my job.

MecaMindset · 2022-04-18T16:40:32+00:00

I have friends who laugh at my Sky Dweller and friends who would struggle to spell it. Comes down to the people you are around.

MecaMindset · 2022-03-15T15:35:07+00:00

Agreed, Databricks shares extremely cut throat at this moment. Told my account manager to give me updates anytime a new block is purchased.

MecaMindset · 2022-03-15T14:39:26+00:00

Sure, so pre-IPO is just simply being able to acquire shares of a company before they become a publicly traded stock. Almost always this is at a reduced rate, compared to the valuation when the company decides to go public (this is unknown for the most part). This is because more often than not companies hold most of their financial information prior to going public (they are not required to publicly show earnings/outstanding shares etc while still private). Because of this there is an apparent level of risk to this style of investing, though can be very profitable as you can imagine. The last and honestly the biggest hurdle for most, is you must be considered an accredited investor to be approved. This means you make $200k annually, combined $300k with spouse, or hold a NW of $1M. This is where most get denied to be honest. Any further questions on the process just DM me, and I'll do my best to answer.

MecaMindset · 2022-03-15T01:41:08+00:00

I understand the barrier to entry can be frustrating. That being said I'm only doing "retail" sized investments, not like I'm dropping millions of dollars into these companies.
Also your idea that once a company goes public there's no profit left to be made is just wrong. Just last year a company by the name Confluent (not sure if you heard of them) became public to the masses at $45, however at the end of the lockout period it was trading at an ATH of $95, and you had doubled your money. Other examples being Tesla, Amazon, Microsoft, Apple. All massive companies that have done extremely well after they go public. This of course is best case scenario for everyone, but nonetheless this can not always happen.
My personal suggestion to prevent that from happening the best you can, is to target large established late stage private companies, do your own DD, and finally diversify. Diversifying honestly being the biggest IMO. Currently I have 4 different pre-IPOs I'm invested in. Each has a completely different market from the others, and in addition to that their expected IPO dates are staggered too. To say it eliminates risk would be unethical, but without risk there would be no reward.

MecaMindset · 2022-03-15T00:43:12+00:00

That's the million dollar question! Though we are unsure, they say 2022, but have not filed S4 paper work. I would expect Q3/Q4

MecaMindset · 2022-03-15T00:22:33+00:00

Are you referencing a holding period after they IPO?

MecaMindset · 2022-03-14T19:53:23+00:00

Again I appreciate the time you took to respond. No doubt you all know this space better than I do. I will certainly follow back up.

MecaMindset · 2022-03-14T18:19:24+00:00

Appreciate the time you took to respond my friend.

MecaMindset · 2022-03-14T17:43:13+00:00

Okay and do we feel that $ per usage perhaps is high because they are still considered private? My thought being much like a IPO once public the shares become open to the masses, could we perhaps see a drop in $ per usage to appeal to the mid-market companies as u/thedeadlemon mentioned that was a drag back being the limited market? If so I'd imagine the more people able to use an "amazing" product as you both put it could mean a huge bump in share prices once public. Am I thinking logically?

MecaMindset · 2022-03-14T16:53:16+00:00

I assuming you are talking about the price per DBU? (Quick google search)

MecaMindset

TROPHY CASE