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At which stage? They're going public, they're not a startup anymore. If they're still high growth they'd be going after another funding round instead of an IPO.
by mikeryan 11y ago
At which stage? They're going public, they're not a startup anymore. If they're still high growth they'd be going after another funding round instead of an IPO.
- roymurdock 11y agoAt the stage of still being unprofitable. Just like Twitter and Amazon, which are also both public companies. Filing for an IPO does not mean you're slowing growth...it's just an alternate form of fundraising that allows a different mix of investors to join in on the fun.
- mikeryan 11y agoTwitter is pretty much a counter example. They have a terrible time being profitable despite their size and their stock is getting hammered for it. Amazon is a different beast because they live at the razor's edge of profitability and have for years. Square is not close not to mention they're competing with entrenched competitors.
- krschultz 11y agoHistorically that was not true at all. This cycle it has been true, but I'm not sure if that is because of increase compliance cost post Sarbox, increased risk of activist investors choking off growth, or increased availability of private capital.