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Private companies that operate at a positive cash-flow are free to distribute profits to shareholders. Sure, going public makes it easier for investors to liqu
by rockostrich 9y ago
Private companies that operate at a positive cash-flow are free to distribute profits to shareholders. Sure, going public makes it easier for investors to liquidate their stock, but that doesn't mean you can't get returns from investments in private companies.
- rlanday 9y agoAs a practical matter, Dropbox is operating at a loss, yet has value as a company because of the expectation that it will hopefully someday turn a profit. IPOing allows Y Combinator, which specializes in early stage investment, to realize a return on their investment and invest in more companies without having to wait even longer.