3 ms·
There's a big difference between a VC round and the open market. The markets are often not driven by anything even related to the companies whose valuations flu
by msy 15y ago
There's a big difference between a VC round and the open market. The markets are often not driven by anything even related to the companies whose valuations fluctuate wildly by billions of dollars in under a second. They don't open to you (to same degree) to hostile takeovers, pump-dump schemes and naked short attacks. They force companies to kowtow to the opinionated whims of unaccountable analysts and focus on short term profits over long term strategy.
- RickHull 15y agoAn IPO is the act of selling your business to the public. You are definitely not the only one who may prefer to stay private. It's a business decision the each individual business faces.
- mdda 15y agoI'm sorry, but I don't see why people are so hostile to trading in the open market. The public stock market is a real-time debate about valuation in the open. The VCs do it behind closed doors. Being critical of the markets for being divorced from reality is fine, but surely having a public stock price is better than having it all hidden from view? If you're not a fan of more openness, maybe you are hoping to 'pick off' a VC who over-values your company, away from a public analysis of its actual worth? As for having a public listing forcing a company to do anything - it's not true at all (except for publishing audited accounts). The company is free to ignore the gyrations of the market, and keep its plans secret too.