According to the results of the IPO of 2019, 5,000 new millionaires may appear in Silicon Valley

Image: Unsplash



At least 5 thousand employees of technology companies can become millionaires after the release of these organizations on IPO. This assessment was published by Yahoo Finance with reference to the data of the study by big data expert Deniz Kahramaner.

')

Employees of which companies will get rich soon

The analyst studied the situation in eight companies: Airbnb, Instacart, Lyft, Palantir, Pinterest, Postmates, Slack and Uber. All of them are going to IPO in the current year.



"According to the results of the placement of shares, over the next two years, from $ 150 billion to $ 250 billion of capitalization will be unblocked in 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 the data, including on the basis of conversations with representatives of the famous start-up accelerator YCombinator, whose participants were companies such as Airbnb, Dropbox and Stripe.



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

New record and its consequences

If Karamaneer's calculations are correct, then the current year will set a new record. The last was installed in 2004 - then the IPO of Google led to the emergence of thousands of new millionaires. In 2012, Facebook went on to repeat this result.



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



The researcher estimates that 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 there will be virtually no housing left below $ 1 million in San Francisco.



However, not all analysts agree with this view. For example, the founder of the service for rental housing 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 of housing today do not believe that the “American dream” implies buying a home. Many young rich people will prefer to invest their capital in travel and other things that have no physical expression.



For all this, rental housing in areas close to the offices of IPO companies will definitely grow. Wealthy employees will want to quickly get to work.

Other materials on finance and stock market from ITI Capital :

• Western securities analysis tool
• Analytics and market reviews
• Purchase of shares of American companies from Russia
• Huawei overtook Apple in terms of sales. The capitalization of the American company still reached $ 1 trillion
• Analysts: Microsoft's capitalization could reach $ 1 trillion
• Mass media: large-scale cyber attacks accelerated the growth of capitalization of companies from the information security industry
• Bloomberg: Hedge Funds Recognize Brexit Results Before Others And Earn Billions