The folks managing the IPO all have egg on their faces
To the contrary, they have every reason to be delighted with the result! An IPO that pops dramatically after the beginning of trading means money left on the table that the investors and selling insiders (those "managing the IPO") won't get. It may be a disappointment to the rank-and-file employees with lockup agreements, and an awkward thing to explain to potential employees, but from the perspective of a pre-IPO stockholder, it was a great result.
As for whether this is 2000 again or not, time (and more data points) will tell. There were successful companies back then, too, that are still with us now. The transition to more traditional valuations will eliminate the indefensible businesses but bring stock prices, VC funding, and (as you point out) salaries to more sustainable levels.
They have incentive to get a close enough valuation. Pop too much and they leave money on the table (since they get commission on total amount raised.), drop too much and their clients may be signing up less money for their next IPO.
To the contrary, they have every reason to be delighted with the result! An IPO that pops dramatically after the beginning of trading means money left on the table that the investors and selling insiders (those "managing the IPO") won't get. It may be a disappointment to the rank-and-file employees with lockup agreements, and an awkward thing to explain to potential employees, but from the perspective of a pre-IPO stockholder, it was a great result.
As for whether this is 2000 again or not, time (and more data points) will tell. There were successful companies back then, too, that are still with us now. The transition to more traditional valuations will eliminate the indefensible businesses but bring stock prices, VC funding, and (as you point out) salaries to more sustainable levels.