Buying Broken IPO’s ….Stocks as Venture Capital

Last year was a record for IPO’s.

With all that supply comes a lot of buyer exhaustion and a lot of broken IPO’s.

This has not happened in a while. The next generation of stock market leaders come from the IPO’s.

In the past, I have written about how I treat my crypto allocation as venture capital. I expect 50-70 percent drawdowns and some zero’s. I position size accordingly.

With so many broken IPO’s I am starting to consider an allocation of capital to a group of these IPO’s like I would Venture Capital as well.

Koyfin has a free dashboard called ‘Recent IPO’s‘ that categorize the IPO’s of the last year and all the metrics. It is easy to organize. I am likely going to allocate 3-5 percent of my stock portfolio to the software and biotech stocks down 30-80 percent and treat the holdings as venture capital for 3-5 years and manage accordingly.

Just an idea.

If any on the list stand out to you hit me up.