Texample of speculation, in the sense of anticipation of the future, the stock market is a big pendulum which constantly oscillates between the short time, even very short, the nanosecond of financial algorithms, and the very long, that of daring investors who try to read in the passing of the years the promise of a spectacular fortune. Those betting on start-ups for new digital services, from taxis to groceries, can be patient. Some waited decades for Amazon’s first profits.
The crisis, inflation, rising rates are making money more burning and scarce. According to the Crunchbase database, investments in venture capital, the obligatory step for entrepreneurs, fell by half in the first half of 2023 compared to the previous year.
This is why Instacart’s IPO attempt will be closely followed on Wall Street. She will decide the fate of her peers. Founded in 2012, the company delivers groceries to your home. It begins its presentations to investors on Monday September 11 to determine its valuation. She has already taken stock of these changing times. During its last private financing round, in 2021, it sold shares valuing it nearly 40 billion dollars (37 billion euros). We were coming out of confinement and Americans had flocked to the site to do their shopping.
Attentive investors
Today, the Wall Street Journal suggests a valuation of around $10 billion. The company would therefore have lost three quarters of its value in less than two years. And if she succeeds, she will be able to consider herself happy. In this fast delivery sector, it’s carnage. In Europe, there is only one major player still standing, the unlisted Turkish Getir, which has absorbed all its competitors and yet has seen its valuation drop from nearly 12 billion to 2.5 billion dollars, during its last fundraising appeal.
Instacart has the advantage of having found the path to profits at the end of 2022. This is now a mandatory prerequisite for knocking on the door of the Stock Exchange. But will this be enough? All investors will be watching for the adventure of this site, whose task is to connect customers, delivery people and physical stores. The barometer of this virtual grocer will be finer than that of the British company ARM, which is also entering Wall Street. The price setting is expected on Wednesday September 13 and the first quotation the following day.
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