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I think this means Mission Accomplished for the investors. Suck out all the value from the company and then dump it on retail investors by going public.
by maxxxxx 8y ago
I think this means Mission Accomplished for the investors. Suck out all the value from the company and then dump it on retail investors by going public.
- mlthoughts2018 8y agoPeople keep not understanding or appreciating this point. This is precisely what Uber is in the middle of doing right now too, and to some extent probably what Spotify did, and the future value of those two is by no means clear or stable. As long as they can can prop up the valuation for a short time, they can capitalize shortly after an IPO and externalize the losses on unwitting millions of people who came to own some unicorn stock because they were auto-enrolled in the 2055 retirement mix of some bottom scraping asset manager that charges high fees on a portfolio with loose definitions of what it can invest in.
- dcow 8y agoWhere I grew up “pump and dump” was a dirty term.
- TuringNYC 8y agoThere have been winners and losers on the tech IPOs of the past 5yrs. I'm curious how you differentiate the losers from the winners since some of the tech IPOs have done quite well. (although, to be fair, Blue Apron is an obvious case of the next groupon.)
- maxxxxx 8y agoI think the general trend is to IPO much later at a very high valuation so the company needs to be an enormous success for retail investors to just break even. There is just not much upside left. It's also bad for regular employees. They have to stay on for very long before can make some money.