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Pre-IPO Stock Market Update - Apr 14, 2023 | Reddit charges AIs for API access, OpenAI investor terms, IPOs are coming!, Epic Games acquisition, SpaceX's Starship launches

00:34 | Reddit, Twitter and AI training and paying for data
- Reddit will impose a paywall around its API
- Pricing has yet to be determined
- “The Reddit corpus of data is really valuable,” Huffman (CEO) said. “But we don’t need to give all of that value to some of the largest companies in the world for free.”
- Twitter/Musk threatens to sue Microsoft over using Twitter data to train Microsoft AIs

02:10 | OpenAI investor ownership terms/structure
- OpenAI has completed a $300m tender offer employees liquidity
- Investors in the tender offer purchase rights to future profits rather than traditional equity
- Cash waterfall; original investors get paid back, then Microsoft gets 75% of profits, other investors 25% of profits until Microsoft is paid back, then Microsoft 49%, other investors 49%, OpenAI nonprofit 2%

04:29 | IPOs coming!
- Rippling eyeing an IPO; Conrad (CEO) believes an IPO would fulfill an “implicit agreement” made with the startup’s investors and employees to provide a meaningful exit
- SeatGeek files for IPO ... second attempt to IPO in last two years, first was a SPAC that fell apart
- Chia Network files for IPO ... cryptocurrency, XCH, already trades on crypto exchanges

06:04 | Tyler's Corner by Tyler Siconolfi ... Epic Games, Plaid, SpaceX
- Epic Games acquires Brazil-based game company, Aquiris to expand LatAm presence.
- Plaid partners with Finastra to streamline services customers of the Fusion Digital Banking platform.
- SpaceX attempts first orbital test flight of their new Starship spacecraft.

08:14 | Large capital raises
- Spring Health | $71m Series C, $2.5b valuation
- Kurly | $8m Series H, $2.3b valuation
- Clear Street | $435m Series B, $2.0b valuation
- ID.me | $132m Series D, $1.6b valuation
- Altruist | $112m Series D, $962m valuation

09:38 | Pre-IPO stock market performance
- Pre-IPO stocks were flat at 0.04% for the week vs the S&P 500 up 0.79%.
- YTD pre-IPO stocks still trail the S&P by about 20%.
- Only 3 of the 15 pre-IPO stocks in the index are up year to date … OpenSea up 2.31%, Revolut up 1.26%, and N26 is flat … five stocks are down over 20%; Discord, Airtable, Flexport, Epic Games, and Chime.
- Secondary market trading activity has totally dried up for OpenSea so I would not put much weight on that 2.31% number.
- Brex has a nice week last week up 1.04%. SpaceX was up 0.91%. Epic Games was the big loser down 4.00% for the week.

AG Dillon & Co venture capital funds...
- AG Dillon SpaceX Pre-IPO Stock Fund = www.agdillon.com/spacex
- AG Dillon Pre-IPO Equity Fund (top 15 pre-IPO stocks) = www.agdillon.com/top15

This Week in Pre-IPO Stocks - Market Update - Apr 14, 2023 - E42

This Week in Pre-IPO Stocks