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Still seems weird seeing a company that's not even profitable yet go public. I don't expect the initial demand for their stock will be that high, despite the gr
by rradu 16y ago
Still seems weird seeing a company that's not even profitable yet go public. I don't expect the initial demand for their stock will be that high, despite the growth.
- jonknee 16y agoPlenty of companies go public before becoming profitable, it's a way to raise capital. Tesla Motors comes to mind for a recent example. Same for Clear.
- dereg 16y agoExactly. The entire purpose of opening your company up to the public is so that you can raise more money than you would otherwise get privately. Yes, the shares would probably be discounted for lack of profitability, but perhaps the timing is right for them. I don't know.
- rradu 16y agoTesla was nowhere near profitability when they went public. Pandora just has to wait a few more quarters before getting access to a natural flow of cash. That's what I found strange.
- adamt 16y agoTheir VCs from 2000, 04 and 05 will all be hungry for an exit.