Gerstner says Instacart will IPO at around $10B versus its $50-60B private valuation, an 80% down round.
“Right? Super high quality company. I think its last private round was 50 or 60,000,000,000 in the bubble, and now it's rumored to be going public at somewhere around $10,000,000,000.”
Gerstner cites Instacart dropping from $39 billion private valuation to $6.5 billion public market value as benchmark.
“if you just wanted a rule of thumb, again, not any specific company, but, you know, you take Instacart, an amazing business built by amazing friends and, you know, people who killed it, but their last round in the private markets was $39,000,000,000 Today, in the public markets, they're worth 6.5, okay?”
Gerstner says Instacart needed board courage to ignore prior high valuations and go public at lower valuation.
“I think one of the obstacles. Right? So it's performed incredibly well. Off of the bottom, it's performed really well since the IPO, but it took a board that had the courage to say, you know, we're going to ignore what the prior valuations were, and we're gonna focus on getting the the company public.”