IPO should not be the end goal for Brazilian startup founders
One of the main discussions taking center stage at Web Summit Rio 2024, which ran until last Thursday, centered around the possibility of an initial service resumption and what that would mean for technology-based businesses. Expanded.
How it’s played. Panel premise, intermediary brazil report Editor-in-chief Gustavo Ribeiro said the market is expected to start recovering this year.
background. Increased liquidity driven by central banks and governments to prevent economies from shutting down during the peak of the coronavirus pandemic also contributed to the increase in the size and number of IPOs. Later, high interest rates introduced to combat inflation drove away investors. The new cut cycle could help companies return to IPO plans, albeit slower than expected.
Yes, but… Two experts who participated in the conversation, Fabiana Fagundes, founding partner of FM/Derraik, and Marcello Gonçalves, managing partner of Domo.VC, dismissed such expectations.
- “Bankers I spoke to in preparation for this session expect a recovery between the fourth quarter of 2024 and the first three months of 2025, but IPO “The valuation will be different from 2021,” he said.
- For her to be different means a much greater appreciation. “The calculation is done backwards. How much liquidity do we need in the market for a company to get the right valuation? They understand we need 20 people.” .
