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It would be so much easier for everyone, if companies would IPO earlier. Evaluation of your option value would be straightforward, there is liquid market, no ne
by jakozaur 11y ago
It would be so much easier for everyone, if companies would IPO earlier. Evaluation of your option value would be straightforward, there is liquid market, no need to worry about investors preferences, ratchets, etc. Also the whole market gains a lot of efficiency if basic financials are public.
Not so long ago, companies used to IPO way earlier... Microsoft, Apple, Amazon...
- x0x0 11y agoUnfortunately, it appears that many startups have gotten their valuation ahead of their economics, so IPOing isn't an easy option for them because it would be a large down round. IIRC, most of the large tech ipos in the last year went public below their final private valuations. Though to be fair, the last investors often got ratchets. This is a good read too http://thomasgr.tumblr.com/post/135710601255/the-pre-ipo-dip-the-opposite-of-the-burst-of http://thomasgr.tumblr.com/post/135710601255/the-pre-ipo-dip...
- maneesh 11y agoYea not to mention the sarbanes oxley act, post-enron, that makes public company regulations obscenely difficult.