Gurley: IPO underpricing and fees create a 33% cost of capital
Bill Gurley · The Gift and The Curse of Staying Private with Bill Gurley · Invest Like The Best · Jun 10, 2025 · at 30:10
Bill Gurley criticizes traditional investment bank IPO fee structures and underpricing relative to private funding rounds.
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“I had my friend Jay Ritter rerun the data. Is there, you know, up like 25, 26% underpricing. You add in the seven percent fee, and you're like a 33% cost of capital.”
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