4 ms·
When the share market is hot, sell shares. When the credit market is hot, issue debt. When the consumer spending is hot, sell more product. Many people don't
by vmception 6y ago
When the share market is hot, sell shares.
When the credit market is hot, issue debt.
When the consumer spending is hot, sell more product.
Many people don't get this, specifically that this concept is not married to any particular entrepreneurial idea, and many founders are following these financial axioms, not product line passions.
Way to go Coinbase for getting the ducks in a row.
- jariel 6y agoMost startups are not at liberty to time the market over said horizons and are generally in no position to take on debt. It's more like 'our chances at IPO are always scary, if there ever comes a clear window to do it then DO IT'. It's hot, so strike now. That's mostly it.
- vmception 6y agoBut even after being publicly traded, doing a secondary share offering and dumping it right into the public market is best done when people are FOMOing shares for no reason. You can make a few billion dollars with no effort, owe nobody, and completely mitigate dilution because people were already clamoring for shares, selling into liquidity. Of course if you were issuing dividends those would be diluted until earnings caught up, but, lol dividends. Buybacks all the way.
- Melting_Harps 6y ago> Way to go Coinbase for getting the ducks in a row. See: MBA-ization in action.