EPISODE #7 - This Week in Pre-IPO Stocks Podcast - Feb 17, 2023 | Fusco, Sorenson, Dillon

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EPISODE #7 - This Week in Pre-IPO Stocks Podcast - Feb 17, 2023 | Fusco, Sorenson, Dillon

Don Nitti took the week off. He'll be back with us next week.

01:00 | Bytedance is the largest pre-IPO stock by valuation globally.
- Bytedance is the parent company of TikTok and several other products (mostly in China).
- $61.7b in 2022 revenue.
- 2.0 billion users globally.
- Bytedance is up 20.5% since last primary round in Dec 2020, $180b valuation.
- Current valuation of $216b based on secondary market trading and last primary financing round

09:08 | Reddit is rumored to IPO in second half of 2023.
- Reddit continues to keep their IPO paperwork updated at the SEC, a clue that they aim to IPO once market conditions improve.
- $290m in 2021 revenue, net income numbers are not available but Reddit is reported to be “far from profitable”.
- Down 32% in secondary market trading since last primary financing round in Aug 2021. $6.8b current valuation. $6.6b valuation from Fidelity in a recent SEC filing. $10b valuation at its last primary financing round in Aug 2021.

14:42 | Venture is getting more conservative. How will this impact large pre-IPO stocks?
- Harlem Capital spoke with 40+ active companies, 20+ VCs
- Valuations: Seed: $15-30M post to $10-20M post, Series A: $50-100M+ post to $30-50M post
- Diligence processes: Seed: 1-2 months to 2-4 months, Series A: 2-3 months to 3-6 months
- Higher bar at all stages: Pre-revenue at Seed: raising $1-2M Pre-Seed rounds, Series A: $1.5-2.5M ARR with strong unit economics

32:48 | Favorite AI use case for the week and other interesting emerging tech (Neuralink [computer chips in brains], blockchain, metaverse, self-driving cars, humanoid robots)

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Participant bios...
- Nick Fusco, ApeVue - CEO = www.linkedin.com/in/nickfusco
- Clint Sorenson, WealthShield - CIO = www.linkedin.com/in/csorensoncfacmt
- Aaron Dillon, AG Dillon & Co - Managing Director = www.linkedin.com/in/aarondillonnyc