Keep pulling the thread on Dave.
The current high level of IPO issuance is driven by a fundamental investment thesis centered on the reindustrialization of America and the creation of new economies in sectors like space and AI.
The stock of SpaceX finished its first day of trading up 19% from its IPO price.
SpaceX's stock increased by an additional 15% on the trading day following its debut.
Excluding the SpaceX deal, new equity issuance volumes year-to-date are up almost 2x compared to the same period last year.
During the same week as the SpaceX IPO, an additional $10 billion of equity capital was raised from other deals.
Dave definitively expects an increase in IPOs from private equity-backed companies in the second half of the year.
Dave believes SpaceX has the potential to be a generationally transformational business.
Dave believes the successful IPO of SpaceX is a positive indicator for the potential market reception of future IPOs from AI companies like Anthropic and OpenAI.
The broader equity markets are active, with a resurgence in new issuance from sectors such as healthcare, biotech, industrials, and energy.
Dave contrasts the current IPO market, which he sees as fundamentally driven by a 3-to-5-year outlook, with the 2021 market, which he characterizes as technically driven by zero interest rates.
Dave predicts that the summer period will be very active for the equity issuance market.
Dave believes the speed at which Google was able to raise capital demonstrates the depth and capacity of the public markets.