Dual class stock structures have become increasingly popular in the last couple of years. Initial public offerings that feature dual-class stock structures have risen from 4 percent in 2009 to 14 percent in 2018.1 However, their increased usage has also brought on a new wave of skepticism and oversight. This post examines the arguments for…
Tag: IPOs
The Unicorn’s Dilemma
For startups seeking to join the ranks of “unicorns”- private companies with billion-dollar valuations- the venture capital climate has never been more favorable. The number of private companies receiving billion-dollar valuations has ballooned in recent years1 and as of 2015, a record 41 companies have received exactly such a valuation.2. However, these sought-after valuations are…