Pure Storage IPO Range Indicates Little Change in Year-Old Value
Pure Storage Inc., the third-biggest seller of all-flash storage systems, is seeking a valuation in its initial public offering that almost matches what private investors said the company was worth 17 months ago.
After a financing round led by T. Rowe Price Group, Pure Storage said in April 2014 that it fetched a valuation of $3 billion. Now, after nearly a year and a half of development and conducting business, that figure has increased only slightly at best.
Pure Storage’s IPO will serve as test over whether “the private market is intrinsically different from the public market, from a valuation perspective,” said Rett Wallace, chief executive officer at Triton Research, which analyzes Silicon Valley companies preparing an IPO.
“In the Valley, an emerging clever truism is that an IPO is the new down round,” he said. “With so few tech deals in the market, Pure Storage is set up to be the singular data point to support or debunk this idea.”Read full article at bloomberg.com