<\/img><\/span><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Arm Holdings will help jump-start the IPO market, according to the venture capitalist behind Airbnb and Pinterest.<\/p>\n FirstMark Capital’s Rick Heitzmann believes real fundamental demand for IPOs is returning.<\/p>\n “People are looking for the new toy,” the firm’s founder and partner told CNBC’s “Fast Money<\/a>” on Thursday. <\/p>\n Chip design company Arm<\/a><\/span><\/span><\/span>, which is affiliated with Softbank, jumped almost 25%<\/a> in its Nasdaq debut on Thursday. Its market cap ended the day at $65.2 billion. <\/p>\n “This isn’t even a real IPO. This is a re-listing of a company by Softbank to the public similar to Kenvue<\/a><\/span><\/span><\/span> which was the J&J [Johnson & Johnson] spinoff<\/a>,” added Heitzmann. “There are people who want to buy IPOs.”<\/p>\n According to Heitzmann, there’s a more rational backdrop for IPOs now versus the zero-interest rate environment. He believes Arm executives set the IPO for success.<\/p>\n “They had to price for the pop. If Arm would have traded down today, the market would have felt a lot differently,” said Heitzmann. “They also have a very small and limited float. So, therefore, they’re constricting demand and pricing it the right way.”<\/p>\n And, Heitzmann expects next week’s Instacart IPO<\/a> to follow in Arm’s footsteps. <\/p>\n “It’s the reason they’re going to price Instacart down 70% from the last private round.” said Heitzmann, who does not have a stake in Arm or Instacart. “They’re pricing it to get into a good new normal for an upswing.”<\/p>\n Instacart is set to price after Monday’s market close and start trading on Tuesday under the ticker CART at the Nasdaq.<\/p>\n Heitzmann sees shares of the grocery pick-up and delivery service performing well out of the gate. He notes Instacart’s advertising business should also be a boost to its bottom line.<\/p>\n “They’re selling very low margin products in order to advertise against them,” he said. “It’s been a good model for supermarkets. It’s been a good model for Amazon<\/a><\/span><\/span><\/span>.”<\/p>\n Yet, Heitzmann questions which investors will actually feast on the Instacart and marketing automation company Klaviyo<\/a>, which is scheduled to go public next Wednesday.<\/p>\n “People were wondering how much appetite is there from the big traditional IPO buyers,” Heitzmann said. “We’re going to find out next week.”<\/p>\n