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I could be wrong, but wouldn't VCs prefer some type of large acquisition, a la WhatsApp, as opposed to an IPO?
by ryanSrich 9y ago
I could be wrong, but wouldn't VCs prefer some type of large acquisition, a la WhatsApp, as opposed to an IPO?
- hluska 9y agoWhy would there be a difference? They're both liquidity events.
- ryanSrich 9y agoBoth parties have a lot more flexibility with M&A (this includes vested partners) — meaning private deals have far better conditions if the deal isn't a saving grace. IPOs can have lengthy lock up periods and are generally much worse for leadership than acquisition (disclosure of personal information like compensation).
- sjg007 9y ago180 day lock up probably for employees mostly.. maybe founders are included in that.
- mrep 9y agoIPO's tend to be bigger paydays even if they are more risky so I would assume they prefer IPO's.