March 14, 2019 at 14:24

According to the results of the IPO of 2019, 5 thousand new millionaires may appear in Silicon Valley



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    At least 5 thousand employees of technology companies can become millionaires after these organizations enter the IPO. This assessment was published by Yahoo Finance, citing data from a big data expert Deniz Kahramaner.

    Which companies will get rich soon


    The analyst examined eight companies: Airbnb, Instacart, Lyft, Palantir, Pinterest, Postmates, Slack, and Uber. All of them are going to IPO this year.

    “Based on the results of the placement of shares over the next two years, from $ 150 billion to $ 250 billion of capitalization will be unlocked on the market.”

    Where did the figure of five thousand come from


    To calculate the number of future millionaires after the IPO, Karamaner compiled tables with the distribution of shares among the first employees of each company. He took data, including on the basis of conversations with representatives of the famous startup accelerator YCombinator, whose participants were companies such as Airbnb, Dropbox and Stripe.

    The analyst also equated the future IPO rating with the latest valuation of the company by venture capitalists. For example, a Uber valuation when entering a stock exchange in this case should be $ 72 billion.

    New record and its consequences


    If Karamaner's calculations are correct, then the current year will set a new record. The past was established in 2004 - then the Google IPO led to the emergence of thousands of new millionaires. In 2012, listing on the Facebook exchange repeated this result.

    It turns out that in the near future a huge amount of new money will appear in Silicon Valley. And this will have a serious impact on many areas of life there. One of the main trends predicted by analysts is the cost of real estate and rental housing.

    According to the researcher, up to 2,400 new millionaires will be able to potentially purchase homes worth up to $ 1 million, and another 200 people will be able to buy real estate worth $ 10 million or more. All this will lead to higher prices. As a result, according to Karamaner, over the next five years in San Francisco there will be practically no housing cheaper than $ 1 million.

    However, not all analysts agree with this view. For example, the founder of the rental service Zumper Antemos Giorgiades (Anthemos Georgiades) believes that it is unlikely that all new millionaires will immediately want to buy a house. According to company research statistics, up to 33% of tenants today do not believe that the “American dream” involves buying a house. Many young rich people will prefer to invest their capital in travel and other things that do not have physical expression.

    With all this, rental housing in areas near the offices of IPO companies will definitely grow. Wealthy employees will want to get to work faster.

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