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2011 May be the Year of the IPO for Social Media

Startup Professionals Musings

It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. You need to work through a team of underwriters, who administer the public issuance and distribution of securities from a corporation.

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New Rules for the New Internet Bubble

Steve Blank

The reward for doing so was a liquidity event via an Initial Public Offering. Startups that win in the bubble will be those that get wide adoption (using freemium, viral growth, low costs, etc) and massive distribution (i.e. They taught you about customers, markets and profits. Wide Adoption. Visibility.

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Go Big or Go Home: It’s a binary outcome for marketplace start-ups

Version One Ventures

The acquiring company can just plug that product into their existing distribution channel to help round out their current product suite and grab more market share (and some might argue that even this is happening less frequently).

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What type of entity should I form?

Startup Company Lawyer

Thus, the earnings of a C corporation are generally taxed twice: once at the corporate level on the corporation’s taxable income and a second time at the stockholder level on dividends or distributions. A C corp is also the easiest type of entity to take public in an initial public offering.

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The pioneers of Silicon Valley’s fast culture on how to grow quickly, not recklessly

Reid Hoffman

And from a financial perspective, any investor would be better off buying stock in Amazon than buying and share of a corner bookshop; if you invested $100 in Amazon’s 1997 initial public offering (IPO), those shares would have been worth about $120,000 in 2018. For example, Amazon’s market is, well, everything.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering. At the end of the period, all profits and proceeds are distributed to the various partners on a pre-determined split.

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The Rise of the Secondary Market for Emerging Growth Equities– Necessary But Insufficient

Pascal's View

This enabled consolidation among the brokerage houses and banks, which led to the loss of multiple distribution channels for securities and reduced the ability for small players to survive. (This is a good example of technology driven market change being accelerated by new securities regulations). cents or 6.25

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