IPOs in 2020 have been quite the rollercoaster ride, with some companies experiencing a significant jump in their stock prices on the first day of trading, while others struggled to meet expectations. According to data, only 25% of companies ended the day trading lower than their IPO price, while over 25% of companies ended the day trading more than 50% higher than their IPO price. This phenomenon is commonly known as the "IPO pop."

IPOs in 2020 have been quite the rollercoaster ride, with some companies experiencing a significant jump in their stock prices on the first day of trading, while others struggled to meet expectations. According to data, only 25% of companies ended the day trading lower than their IPO price, while over 25% of companies ended the day trading more than 50% higher than their IPO price. This phenomenon is commonly known as the "IPO pop."

Out of the 61 IPOs in the US in 2020, the median company that went public had a "pop" of 20% on the first day. This means that investors who were able to buy shares at the IPO price saw a 20% increase in the value of their investment within a single day. However, it's important to note that this doesn't mean that all IPOs are guaranteed to have a positive pop. There are still risks involved, and not every company will experience the same level of success.

One interesting aspect to consider is that the 61 companies that went public in 2020 raised $6.7B less than they would have been able to if their IPOs had been priced at what the market valued the company. This discrepancy highlights the challenge faced by institutional investors who want to make a return on their investment. Their goal is to get the stock as cheaply as possible, but they also need to ensure that the company raises enough capital to fund its growth and expansion plans.

Now, let's shift gears and talk about motivating users to invite their friends to a new platform. When users begin inviting the people they know to join a platform, it can have a significant impact on its growth. Studies have shown that a sense of belonging is recognized as an important determinant of psychological and physical well-being. Relationship building, involvement, and identity building are key factors that contribute to this sense of belonging.

According to a source, 78% of users feel that relationship building is a crucial aspect of their online experience, while 69% value involvement in the platform's activities and discussions. Additionally, 68% believe that the platform helps them build their identity. These statistics highlight the importance of creating a platform that fosters meaningful connections and provides users with a sense of purpose.

However, one challenge that many platforms face is that they are only useful if users have friends and connections on the platform. This can be a barrier to entry for new users who may not have an existing network on the platform. To overcome this hurdle, it's crucial to ensure that new users quickly realize the magical moment or the unique value proposition of the platform. They need to understand the importance of bringing in a couple of friends to fully avail of the benefits it offers.

According to the New York Times, involvement is the third most common reason for sharing or making referrals. This suggests that if you can generate confidence in the imminent and inevitable social reward of making a recommendation, your customers will be more likely to engage in sharing and referrals. Social capital plays a crucial role in successful referral campaigns, as customers are more likely to recommend a product or service if they believe it will bring them social recognition and rewards.

So, how can companies encourage users to invite their friends to a new platform? Here are three actionable pieces of advice:

• 1. Create a seamless onboarding experience: Make it easy for new users to understand the value of the platform and how it can benefit them. Provide clear instructions on how to invite friends and highlight the rewards or incentives they will receive for doing so.

• 2. Foster a sense of community: Invest in building a strong community within the platform. Encourage users to interact with one another, participate in discussions, and share their experiences. This will create a sense of belonging and motivate users to invite their friends to join the community.

• 3. Offer incentives for referrals: Provide tangible rewards for users who successfully invite their friends to the platform. This could be in the form of discounts, exclusive access to features, or even monetary rewards. Incentives can be a powerful motivator for users to actively promote the platform to their network.

In conclusion, IPOs in 2020 have seen mixed results, with some companies experiencing a significant pop in their stock prices on the first day of trading, while others struggled to meet expectations. Motivating users to invite their friends to a new platform is crucial for its growth and success. By creating a seamless onboarding experience, fostering a sense of community, and offering incentives for referrals, companies can increase user engagement and drive organic growth. Ultimately, it's about creating a platform that users feel connected to and want to share with others.