5 ms·
Needing to raise cash to operate or expand, and positive cashflow arent mutually exclusive ideas. A company can be profitable and still need more working capit
by Duhck 7y ago
Needing to raise cash to operate or expand, and positive cashflow arent mutually exclusive ideas.
A company can be profitable and still need more working capital to expand.
That being said, I don't know what to make of Uber, Lyft and WeWork (future) IPO's yet, but I am highly skeptical
- hef19898 7y agoI assume an IPO is the easiest way foe private share holders to cash out. Then again, unless you are really asset heavy (manufacturing, etc..), I agree it might be a sign that less dumb money from the later rounds with dumber money. Or the company is burning cash faster than it is generated. Case in point, when you cash flow positive and idealy profitable even banks would happily finance your expansions. So unless as a company you want to be growing really fast, I don't see the added benefit of an IPO other than cash flow issues. Add too that the increased scrutiny by the authorities and I d prefer to be private. Of course the same argument could be made the other way round.