3 ms·
Hashicorp had a $14 billion IPO in Dec 2021 and was trading at ~$4.7 billion right before the acquisition announcement. At that point it doesn't matter what the
by paxys 3y ago
Hashicorp had a $14 billion IPO in Dec 2021 and was trading at ~$4.7 billion right before the acquisition announcement. At that point it doesn't matter what the company or its founders want or what their long term vision is. Shareholders are in charge and heads are going to roll if the price doesn't get back up quick by any means necessary.
- bigstrat2003 3y agoYet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up.
- paxys 3y agoWhile I would think that, realistically most of my principles are for sale for a few billion dollars.
- chrishare 3y agoIf anyone is listening, I'll gladly undercut this guy by a few orders of magnitude
- elzbardico 3y agoYou need to let some head space for the inevitable bargaining, let's act as sensible cartel members and not undercut ourselves in a race to the bottom, capisce?
- typeofhuman 3y agoYou have no idea what decisions you'll make if you ever were to get that successful. I'm sure you've broken many promises to your younger self.
- financetechbro 3y agoIf companies didn’t go public regular people would not be able to invest in innovation. As much as people hate it, public markets democratize access to investments
- tootie 3y agoTrue but no company has a vested interest in the democratization of investment. IPOs are purely about getting paydays for founders.
- freedomben 3y ago*and early investors. Mostly early investors in many cases.
- ZealousIdeal 3y agocrux of the problem is the SV model is completely broken and leads to these cycles. wish it were more about sustainable progression and not rapid half-baked innovation to achieve paydays for greedy founders/investors
- tootie 3y agoI guess it's not possible to fuel "hypergrowth" this way, but why not just issue debt? Let the market buy in to your growth with a healthy dividend and reduced risk.
- geodel 3y agoHuh, they won't get pay day if no one use their products. And there are plenty of examples of failed products. If people have idea and execution capability for sustainable progression they can very well try outside the valley. It is not like companies don't start outside valley.
- ZealousIdeal 3y ago
- ekianjo 3y agoif you go thru VC you are expected to go public to generate returns for the early investors. its baked in
- berniedurfee 3y agoIf I put in the work to build a successful business and someone offered me a hundred million dollars for it, I’d have a hundred million dollars.
- JeremyNT 3y ago> Yet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up. It's a mistake if you care about the long term health of a company. But... why should you? Hashicorp had a great run, and contributed a lot of great open source products over the years. Today, their products have large user bases and healthy forks seem likely. The founders and early employees cash out, and it's a win for everybody involved. Nothing lasts forever.