Recent failures and collapse of tech start-ups due to running out of time and money have highlighted the challenges faced by the industry. This wave of failures is due to a lack of investor interest, forcing venture capital firms to decide which companies are worth saving.
Instacart has priced its shares at $30 each for its IPO, raising $660 million. The company’s valuation stands at $9.9 billion, significantly lower than its previous funding round. This successful IPO may give hope to other companies planning to go public. Instacart’s expansion into advertising and software tools has allowed it to turn a profit, despite pandemic-related setbacks. The company received significant investments in its IPO shares, attracting Wall Street investors back to the market. Apoorva Mehta, the co-founder of Instacart, owns an 11 percent stake worth $869 million at $30 per share.