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PitchBook Analyst Note: Consumer Unicorns Make Moves for 2021 Direct Listings

Q1 2021

PitchBook Analyst Note: Consumer Unicorns Make Moves for 2021 Direct Listings

February 26, 2021

PitchBook Analyst Note: Consumer Unicorns Make Moves for 2021 Direct Listings
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Our latest analyst note explores why companies valued at more than $5 billion might pick a direct listing over a SPAC merger, and why a wider range of businesses could pursue this alternative path to the public markets. Among the takeaways:

  • A direct listing, combined with a large private fundraising round, can allow large unicorns to select the specific pricing and investors they want.
  • This approach can be especially attractive for companies that have above-market revenue growth or operate in a popular industry, which can drive significant investor demand.
  • Regulatory changes may help level the playing field between traditional IPOs and direct listings.

Note: This report was updated on March 12, 2021.