4 ms·
Why would an IPO be bad for the company and employees? It's just another fundraising round, with new shares issued. I guess you're suggesting that an IPO expo
by stanleydrew 10y ago
Why would an IPO be bad for the company and employees?
It's just another fundraising round, with new shares issued.
I guess you're suggesting that an IPO exposes a company to more of a herd mentality regarding immediate profitability which it wouldn't be exposed to in a private round of financing, and that it might be punished for it?
- toomuchtodo 10y ago> I guess you're suggesting that an IPO exposes a company to more of a herd mentality regarding immediate profitability An IPO exposes a company to ruthless financial scrutiny, which doesn't exist when they're private. Going public and having your share price drop below expectations is the most epic of down rounds.
- vasilipupkin 10y agoThat statement assumes that private late stage investors aren't ruthless and don't scrutinize the companies they invest in ?
- toomuchtodo 10y agoMy assumption (based on the last few tech IPOs) is that late stage investors are putting lipstick on a pig and trying to get out the door before the music stops. https://mattermark.com/2015s-tech-ipos-performing-even-worse-thought/ https://mattermark.com/2015s-tech-ipos-performing-even-worse... And Steve Blank: > Steve Blank on the Tech Bubble: 'VCs Won't Admit They're in a Ponzi Scheme' http://www.inc.com/zoe-henry/steve-blank-tech-bubble-burst-ponzi-scheme.html http://www.inc.com/zoe-henry/steve-blank-tech-bubble-burst-p...