Look at the IPO class of 2020
- Airbnb - Airbnb S1 Analysis
- Asana - a work management platform
- Unity - a 3D video game dev platform
- Snowflake - a data warehousing startup
- Palantir - Peter Thiel's data products startup for gov
- Sumo Logic
- Doordash
If we just include Airbnb and Doordash, they have 150 billion worth of market cap after first week of trading. If we assume even 10% of that went to employees, thats 15 billion of liquidity coming to the bay area only from these two IPOs. Even at half the valuation, its will create a new crop of home buyers, new seed rounds, new angel investments that will plant the seeds of the future IPOs.
Also there has been lot of talk about HP and Oracle leaving the bay area. In all fairness, Bay area left these companies long before they left Bay Area. It was hard for them to hire talent in a competitive market given their brand, vision and strategy. Also given their uncompetitive pay, very hard to see why folks will prefer them over companies with the chance of going IPO. I think in the short and medium term, it is great news as they will make room for other new startups to secure leases in the bay area.
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