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Reversing Unintended Consequences From Regulation is Critical to Restoring Small Company IPO’s

Pascal's View

Second, emerging growth companies lose negotiating leverage in acquisitions when they have no other viable liquidity alternatives. Between 2001 and 2008 mergers and acquisitions (M&A) accounted for 87% of venture-backed company exits, up from an average of 44% in between 1992 and 2000. Investors take risk in order to reap rewards.

IPO 28
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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. In the case of an acquisition, the shares are tendered for cash and/or stock in the acquiring company.).

IPO 159
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Barron’s Article on Tech IPO’s Misses the Importance of the Extinct Sub-$50 million IPO

Pascal's View

Such market power allows bankers to shapes the profile of those companies worthy of going public to favor the natural demand from their largest clients: short-term trading focused hedge funds and large institutional investors that demand highly liquid public securities. Share and Enjoy:

IPO 40
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Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

I have to admit my West Coast bias here, having learned the ropes at a large Silicon Valley firm ; it makes little sense to me to have investor’s counsel drafting documents that are woven into the fabric of a company’s governance and capital structure, with which the company will likely be living for years after the investment is made.

Finance 79
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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

On March 26, SoFi announced that “it will be offering its members (at least those with $3K in their account) the ability to invest in IPOs for companies going public, an investment opportunity that has traditionally been reserved for large institutional investors or ultra-high-net-worth individuals.”

IPO 82