WHY IPOS ARE TERRIBLE INVESTMENTS

Summary from the TLDR Founders newsletter

64% of software IPOs fall below day 1 closing price after 6 months. Investing equally across 55 recent software IPOs would have returned -8% after 6 months, while the broader market returned +6%. The median return from those IPOs is now -43%. Institutional investors capture the "IPO pop" (median 38% for software), but retail investors buying after this pop typically lose money.