Typically an IPO day is all bell ringing, celebration, and whatnot. Venture capitalists are getting ready to cash out on shares they’ve been holding onto for a really long time (post-lockup period, of course). Limited partners are preparing to get a hefty distribution in their pockets and deciding where they’ll put that capital to work next. Founders and employees get to waltz around the Nasdaq building, ringing the listing bell and getting their photos taken, and everyone tells them something along the lines of “Good job—we always knew this day would come,” and pats them on the back. And hey–even journalists like me have something to get excited about: After years of secrecy, it’s always fun when these mega-private companies finally start to disclose their financials, payment agreements, and key business risks (you truly never know what sort of absurdities you’ll uncover in a measly footnote).
But alas, this is 2023, and not everyone is quite as thrilled about a good ole IPO as in years past. Instacart, expected to list today under the ticker "CART," was worth some $39 billion back in 2021, when people were working from home and madly ordering groceries on their smartphones. The company has taken an approximately 75% haircut since then in valuation, and advertising is now a significant portion of its business. Some of Instacart’s investors may spend this evening tallying disappointing figures in an Excel spreadsheet rather than pouring champagne with their colleagues.
