In this episode of Run the Numbers, CJ sits down with Jay Ritter. They break down what Apple, Nvidia, the dot-com boom, and today’s AI giants can teach us about IPOs, why companies leave money on the table on day one, why firms stay private longer, and what the data actually says about long-term IPO performance.

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SPONSORS:

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Maximor is an autonomous finance platform that runs order-to-cash, procure-to-pay, the close, cash management, and reporting on self-learning agents instead of a dozen disconnected tools. One PE-backed customer posts 98% of transactions directly to its ERP, with the remaining 2% routed to a human for review. You pay for outcomes, not seats. See it at https://www.maximor.ai/

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EY has been part of Silicon Valley since it was just a valley, helping the most successful names in tech go from startup to exit to megacap. With teams across strategy, tax, audit, and transactions, EY helps you get your financials right early, long before your investors start asking for it. You build the next big thing, and EY will help you build it right. Learn more at https://www.ey.com/techstartups

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LINKS:

Mostly Talent: https://mostlymetrics.typeform.com/to/cLTxtAsN

Guest: https://www.linkedin.com/in/jay-ritter-1323861/

Company: https://www.ufl.edu/

CJ: https://www.linkedin.com/in/cj-gustafson-13140948/

Mostly metrics: https://www.mostlymetrics.com

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TIMESTAMPS:

0:00 Preview and Intro

3:10 Meet Jay Ritter, Mr. IPO

4:02 The Original 1983 Question

5:08 PCs, Internet, and AI Compared

9:36 Network Effects

14:46 Sitzfleisch: Outlasting the Field

16:10 Where Have All the IPOs Gone

23:29 IPOs as Relationship-Building

26:31 Why Investors Tolerate Founder Control

29:16 Dual-Class Stock's Origins

30:21 How Jay's Thinking Evolved

31:36 Why Boards Don't Get Angry

34:39 Banks' Real Client: Institutions

37:08 Book Building

38:56 Why Direct Listings Haven't Taken Over

39:57 What Goldman Is Really Selling

41:57 Sentiment vs. Long-Term Performance

43:13 Does Staying Private Help Society

49:35 Asking Better Questions with EY

52:12 Are Markets Efficient

40 Years of IPOs with Jay Ritter: What the Data Actually Says

Run the Numbers

40 Years of IPOs with Jay Ritter: What the Data Actually Says