4 ms·
Is it a coincidence that there has been such a large uptick in IPOs just over 10 years after the real-estate meltdown? Or did the meltdown kill off a generation
by rsweeney21 8y ago
Is it a coincidence that there has been such a large uptick in IPOs just over 10 years after the real-estate meltdown? Or did the meltdown kill off a generation of unicorns that couldn't get funding during the crunch?
It's just anecdotal evidence, but I talked to a CEO that had just closed a deal with his A round from Kliner Perkins in August or September 2008. When it came time to fund the deal, the partners at the VC firm made the capital call and the LPs couldn't fund. So Kliner Perkins called the CEO and told them they had to cancel the deal.
The CEO had to make big cuts, couldn't pay rent on the building, etc. He eventually sold the company, but I wonder if it or others would have been IPOing around 2014-2015 if they had gotten the funding they needed.
- pfranz 8y agoI know very little about that world, but I heard Dodd-Frank made going public less appealing. The first google hit for "IPO over time"[1] shows a drop after the dot-com bubble around 2000 and not much around when Dodd-Frank got passed--but it seems surprisingly flat. Money has been really cheap since the recovery. This, plus the amount of VC money, has likely made the threshold for IPO much higher. [1] https://www.statista.com/statistics/270290/number-of-ipos-in-the-us-since-1999/ https://www.statista.com/statistics/270290/number-of-ipos-in...
- merreborn 8y agohttps://i.imgur.com/5ZwpT7z.png https://i.imgur.com/5ZwpT7z.png Venture capital spending keeps rising. and a lot of it is coming from SoftBank https://www.recode.net/2017/10/11/16459856/softbank-biggest-venture-capital-deals-last-quarter-2017 https://www.recode.net/2017/10/11/16459856/softbank-biggest-...