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Everybody talks about the advantages of immediate cashflow, while always ignoring these outcomes. What did going public allow the company to do that it was una
by whathaschanged 9y ago
Everybody talks about the advantages of immediate cashflow, while always ignoring these outcomes.
What did going public allow the company to do that it was unable to do prior to selling out? Did they just need the money to keep paying for bandwidth? Because that's the essence of the 1990s dot com game, with private venture capital being replaced by wall street investment firms.
Unreasonable demands for 'projected growth' is what always kills companies who otherwise, would be maintaining just fine.
- econner 9y agoI dunno there's something to be said about becoming a real company with reporting deadlines instead of living perpetually in private valuation fantasy land.
- speedplane 9y agoWhy would it be better to be a "real" company that has to make a profit, than one that gets endless investment and gets to live in fantasy land? The only reason is that the "endless investment" dried up.
- countryqt30 9y agoThey knew that the boom was over very quickly, so both the founders and investors wanted to cash out
- speedplane 9y agoThe cynic would say the private shareholders saw the sinking ship, and wanted to liquidate their stock while they could.