Uh, no. Those fears proved unfounded—perhaps in part because Lyft is losing hundreds of millions of dollars a year, and Pinterest and Zoom are not. (Zoom, in fact, is profitable.) Both companies priced their IPOs above their expected ranges this week. And both companies saw their stock prices pop even higher in their Thursday debuts.
The unicorn takeover of Wall Street is one of nine things you need to know from the past week:
1. Welcome to New YorkAfter pricing its IPO at $36 per share and establishing an initial market cap of $9.2 billion, Zoom saw those shares begin trading Thursday at a whopping $65 apiece; they closed at $62, for a valuation of nearly $16 billion. Pinterest, meanwhile, priced at $19 per share, achieving a $10.1 billion initial market cap. Its stock opened Thursday at $23.75 and closed at $24.40, a more modest but still significant bump.
On some fronts, the stories are similar. On others, not so much. Considering Pinterest was last valued by VCs at $12.3 billion, some backers might be happier than others, depending on when they bought in. But for Zoom, which had a most-recent private valuation of $1 billion, the offering would seem to be an unabashed success.
That's certainly the case for Sequoia, which owns 26.8 million post-IPO shares in Zoom, according to an SEC filing. The worth of those shares at Thursday's opening price: more than $1.7 billion. At Pinterest, the biggest VC backer is Bessemer Venture Partners, whose 13.1% stake opened Thursday trading with a worth of $1.4 billion.
Not a bad day at the office.
Those firms certainly don't need my advice when it comes to picking startup targets. But if anybody wanted it, here's a tip: Invest in company with a name that ends in "-oom."
We've already covered Zoom's success. We've written before about Boom, a supersonic air travel startup valued at $850 million. There's also Vroom, the operator of a used-car marketplace that raised $146 million in VC at a $796 million valuation in December. If I can cheat just a little bit, last summer brought an IPO for former unicorn Bloom Energy, valuing the cleantech business at an estimated $1.6 billion. Noom is a healthcare coaching startup that raised an estimated $16 million Series D last year at a $91 million valuation.
I can keep going, with some minor spelling modifications. Plume is a VC-backed manufacturer of wifi products. Flume is a VC-backed maker of leak detection products. We're going a bit into the past here, but a money-transfer startup called Xoom went public in 2013 after raising several significant rounds of VC.
The point being … I'm not sure I have a point. But that's interesting, at least!