Casper Sleep CSPR went public today at half the valuation of its last round of private funding. The public equity markets are becoming wary of “Unicorn” start-ups.

2019 saw a number of unprofitable start-ups tank in the public markets. Chewy (CHWY Quick QuoteCHWY - Free Report) , Lyft (LYFT Quick QuoteLYFT - Free Report) , Uber (UBER Quick QuoteUBER - Free Report) , and Slack have all seen a substantial price drop since they entered the markets last year.

WeWorks was preparing to go public but after review of its financial statements investors valued it at less than half its last round of funding. The IPO failed and initial investors had to write down this asset to fractions of what they valued it at.

There is good reason for investor’s apprehensiveness towards the private market’s valuation of start-up “Unicorns”. This public market apprehensiveness may be putting impending IPOs on hold. Companies will be waiting for a resurgence in IPO allure before thinking about debuting shares.

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