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Interestingly, some of the most successful startups today may never "exit". Facebook seems to want to avoid an IPO if they can, and Mark Pincus from Zynga has s
by frederickcook 16y ago
Interestingly, some of the most successful startups today may never "exit". Facebook seems to want to avoid an IPO if they can, and Mark Pincus from Zynga has said he hope he can exist as a privately held corporation indefinitely. [1]
SecondMarket creates liquidity for investors, founders, and employees while allowing the company to still maintain some control of how many investors they have.
At NextGenConf a few weeks ago, Peter Thiel specifically said Clarium prefers to invest in companies that can be successful without any exit. [Can't find a ref here, taken from my notes.]
[1] http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2311 http://ecorner.stanford.edu/authorMaterialInfo.html?mid=2311
- talbina 16y ago>Peter Thiel specifically said Clarium prefers to invest in companies that can be successful without any exit. So how does he get his return? By selling his shares to others?
- frederickcook 16y agoYes, SecondMarket specifically provides liquidity for private companies. Again, I can't find a reference, but I believe Thiel has sold over half his original Facebook stock already in this manner.
- talbina 16y agoSorry I should have been more clear. These companies you mentioned are making hundreds of million in revenue. I'm certain Zuckerberg/Pincus would be considered "losers" if they sold their companies. I'm thinking more along the lines of successful and likely profitable start-ups like Weebly, Justin.tv...but again, these companies already raised money.