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Especially when Uber is by far the most valuable unicorn and you'd think these guys would want to stay on for their IPO payday. Maybe they know it's not happeni

Especially when Uber is by far the most valuable unicorn and you'd think these guys would want to stay on for their IPO payday. Maybe they know it's not happening?

yeukhon 10y ago
I don't think Uber can go IPO any time soon. The financial of Uber is very bad. Bank is happy to manage the IPO, but the stock will probably be very unstable or fail to single digit if Uber continues to lose that much of money. If a company lives on investment money, the stock is useless.
ChuckMcM 10y ago
I believe it would not serve them well to consider its 'unicorn' status, as that emphasizes what might be its biggest challenge, justifying its alleged value, and losing money at the rate they do. Most (if not all) of the companies that went Chapter 7 (complete liquidation) in the dot com boom were like Uber, racing to grow their place into a profitable level of business through private placements. When people stopped believing they could do that, they stopped participating in the equity rounds, and the cash burn was so horrendous that they couldn't slow down if they wanted to. The only possible outcome was a complete flameout, and with no access to capital, and a business model that didn't make money yet, all they could do was go home. Maybe insiders see something like that coming, maybe not, but I have worked in companies that were going to really existentially tough times and it isn't fun. It's actual work. You really learn who is a fair weather soldier when that happens.
- DamnYuppie 10y ago
  Can you elaborate on 'fair weather soldier"? As employees of a company we are not soldiers we don't have to obey orders. It would be irresponsible to stick it out at a company that is going to flame out. If the option is work in a horrendously stressful environment with no real upside vs get another job that is as equally rewarding but more stable and less stressful that is a no brainner to me. I previously was a startup were we worked very long hours over a prolonged period of time trying to turn the ship around. Unfortunately we didn't succeed. Yet I look back at that and don't feel like it was a positive experience where we could collectively feel good about our exploits. I saw what was going on and decided to try and work through it. Yet hindsight being what it is I don't foresee me making the same decision if I find myself in similar situations.
  - ChuckMcM 10y ago
    The term 'fair weather soldier' is a colloquialism that describes people who are present for the "fun and glamour" but leave as soon as things get difficult or un-glamorous. Generally when a place is hip enough to attract people just so they can say "I work at X!" you'll get people for whom the only reason they work there is because it is hip and cool to do so. And when it starts being 'uncool' or 'lame' those same people will find the exits.
mahyarm 10y ago
You can get other offers that will match the expected value at other companies, especially as an executive. You use it as a negotiation tactic. "Can you beat what I got at Uber?"
bspn 10y ago
I'm not sure there will be a payday for anyone holding common. Outside investors will hold preferred stock with a preference multiple that will likely absorb any exit returns at this rate.
linkregister 10y ago
Didn't all of them wait until their 1-year-mark to vest?
65827 10y ago
It ain't gonna be a "unicorn" much longer at this rate.

Especially when Uber is by far the most valuable unicorn and you'd think these guys would want to stay on for their IPO payday. Maybe they know it's not happening?

yeukhon 10y ago

I don't think Uber can go IPO any time soon. The financial of Uber is very bad. Bank is happy to manage the IPO, but the stock will probably be very unstable or fail to single digit if Uber continues to lose that much of money. If a company lives on investment money, the stock is useless.

ChuckMcM 10y ago

I believe it would not serve them well to consider its 'unicorn' status, as that emphasizes what might be its biggest challenge, justifying its alleged value, and losing money at the rate they do. Most (if not all) of the companies that went Chapter 7 (complete liquidation) in the dot com boom were like Uber, racing to grow their place into a profitable level of business through private placements. When people stopped believing they could do that, they stopped participating in the equity rounds, and the cash burn was so horrendous that they couldn't slow down if they wanted to. The only possible outcome was a complete flameout, and with no access to capital, and a business model that didn't make money yet, all they could do was go home. Maybe insiders see something like that coming, maybe not, but I have worked in companies that were going to really existentially tough times and it isn't fun. It's actual work. You really learn who is a fair weather soldier when that happens.

DamnYuppie 10y ago
Can you elaborate on 'fair weather soldier"? As employees of a company we are not soldiers we don't have to obey orders. It would be irresponsible to stick it out at a company that is going to flame out. If the option is work in a horrendously stressful environment with no real upside vs get another job that is as equally rewarding but more stable and less stressful that is a no brainner to me. I previously was a startup were we worked very long hours over a prolonged period of time trying to turn the ship around. Unfortunately we didn't succeed. Yet I look back at that and don't feel like it was a positive experience where we could collectively feel good about our exploits. I saw what was going on and decided to try and work through it. Yet hindsight being what it is I don't foresee me making the same decision if I find myself in similar situations.
- ChuckMcM 10y ago
  The term 'fair weather soldier' is a colloquialism that describes people who are present for the "fun and glamour" but leave as soon as things get difficult or un-glamorous. Generally when a place is hip enough to attract people just so they can say "I work at X!" you'll get people for whom the only reason they work there is because it is hip and cool to do so. And when it starts being 'uncool' or 'lame' those same people will find the exits.

mahyarm 10y ago

You can get other offers that will match the expected value at other companies, especially as an executive. You use it as a negotiation tactic. "Can you beat what I got at Uber?"

bspn 10y ago

I'm not sure there will be a payday for anyone holding common. Outside investors will hold preferred stock with a preference multiple that will likely absorb any exit returns at this rate.

linkregister 10y ago

Didn't all of them wait until their 1-year-mark to vest?

65827 10y ago

It ain't gonna be a "unicorn" much longer at this rate.