VC who backed Asana, Spotify doesn't care about direct listings vs IPO - Business Insider

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Some VCs are clamoring for more startups to ditch investment bankers for direct listings, but one VC who backed both Asana and Spotify says he 'doesn't care' how companies go public

Become an InsiderTwo events happened recently that will cause more highly valued startups to consider going public with direct listings, cutting the big investment banks out of the process.

Direct listings, where companies allow existing shareholders to sell their shares on the public market without the use of investment bankers, give existing investors more freedom to sell their stock earlier. They can sell during the honeymoon period before the company's stock gets impacted by its ability to meet Wall Street's demanding quarterly expectations.

He says when it comes to how tech companies go public he "doesn't care" and isn't pushing for any of his billion-dollar "unicorn" investments to consider direct listings.

 

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