Early last summer, iconic Silicon Valley venture firm Andreessen Horowitz (a16z) was at the top of its game, having delivered the best exit year in it

a16z’s IPO Megahits Fall Hard

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2022-05-13 17:30:07

Early last summer, iconic Silicon Valley venture firm Andreessen Horowitz (a16z) was at the top of its game, having delivered the best exit year in its history. From Airbnb to Coinbase to Robinhood, high-profile portfolio companies were launching or planning public offerings with initial valuations in the tens of billions.

Fast-forward nearly a year, and a much more dismal picture emerges. Of Andreessen’s 17 portfolio companies1 that went public at initial valuations of $1 billion or more in roughly the past 18 months, all but one are trading below their offer price. And even the one outlier—Airbnb—is down from its first-day closing price.

The declines are big too. Coinbase, which debuted at an $86 billion valuation in April 2021, saw its market cap fall below $15 billion this week after a disappointing earnings report. Robinhood is down over 75 percent from its IPO price, and Roblox has shed nearly half its value.

For perspective, we charted the initial and recent market caps of a16z portfolio companies that have gone public since December 2020 below:

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