Investor Demand for Tech with an AI-Twist Drives Astera Labs’ IPO to 54% Increase

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Astera Labs started its life as a public company trading at $52.56 per share, up 46% when the bell rang. Astera Labs makes connectivity hardware for cloud computing data centers. Astera Labs’ IPO price valued it at around $5.5 billion, a figure that swells to around $8.9 billion at its current trading price. The strong performance of Astera in its first hours as a public company could also ameliorate some investor activity that is holding back, or even preventing some public offerings altogether. If VCs know that the startup could pop on the public market like Astera Labs, maybe they will think about the timeline differently.

“Inflection-Microsoft AI Saga Persists as Astera Labs Goes Public”

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Hello, and welcome back to Equity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. This is our Wednesday show, focused on startup and venture capital news that matters. Today we have a grip of startup stories, and a venture capital item that isn’t as bad of news as it seems at first blush. Listen here or wherever you get your podcasts. Here’s the rundown:

The Demand for AI Investment: Astera Labs Goes Public

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Astera Labs IPO will reveal how much investors want in on AI Startups with an AI angle would do well to pay attentionWhile the technology world breathlessly awaits Reddit’s public debut, another company you might never have heard of is about to go public: Astera Labs. While Reddit’s IPO could do well from investors looking to buy a well-known social media company that has an interesting, burgeoning AI data business, Astera Labs is an AI hardware story. So, on an annual basis, this is far from the kind of profitable company IPO experts say this harsh market requires. In the third quarter of 2023, Astera Labs’ revenue began growing dramatically: from $10.7 million in Q2 2023 to $36.9 million in Q3, and $50.5 million in Q4. Putting it all together: Astera Labs has caught a wave thanks to AI data center spending.