6 Reasons Smart Entrepreneurs Think Twice Before IPO

Startup Professionals Musings

For financial reasons alone, an IPO is a statistically rare phenomenon, happening just 275 times in 2014 , out of almost 500,000 startups. As an advisor and mentor to startups, I try to make sure entrepreneurs understand both the pros and cons of an IPO as an exit strategy.

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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of the startup. The common mistake acquirers make is treating all acquisitions the same. Predicting Success or Failure of an Acquisition.

Trending Sources

Is Your Startup Ready For The Challenges Of An IPO?

Startup Professionals Musings

" Current IPO activity feedback seems to support their excitement. IPO market showed more activity than any other first quarter since 2000, with 64 companies raising $10.6 That is more than double the number of IPOs in the first quarter of 2013.

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A look at the Constant Contact acquisition

StartupCFO

IPO: 2007. The Deal: Acquisition: Endurance buying all of Constant Contact’s outstanding shares. Strategic Rationale : Endurance has done 40 acquisition since inception; M&A is a core competency for Endurance.

10 tech acquisitions from 2016 you should know

The Next Web

Exit strategies fall mainly into two camps: IPO, or get acquired. Acquisitions can tell us a lot about the state of the startup world. 2016 has been quite a year, and has spared no one its many, many surprises. So too in tech we’ve seen some pretty surprising deals take place.

Why Hasn't NYC Produced Many Tech IPOs?

A VC : Venture Capital and Technology

He suggests that the lack of NYC tech IPOs compared to Boston is a result of: The IPO culture hasn’t fully permeated NYC?   Perhaps Boston CEOs, CFOs and boards feel more pressure to go public sooner and/or are comfortable with the IPO process because they community has done it so many times.    Perhaps the poor performance of the Facebook IPO soured Wall Street on the consumer sector and advertising-based business models? 

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

Gust

Dual-class voting structures are receiving a lot of attention these days along with intense publicity related to the Facebook IPO , following in the wake of other recent tech IPOs with a similar structure such as Zynga and LinkedIn.

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A New Dawn for Consumer Internet Acquisitions

Genuine VC

Over the past decade, VCs have been lamenting about the poor state of the IPO markets and that the number of real potential acquirers for consumer internet startups has dwindled down to a handful, if that. That optimism, even, can extend beyond the IPO markets to M&A as well.

Israeli High Tech Exits On First Half of 2017 Slowdown and Potential Explanations

VC Cafe

The report sums up the exits of Israeli high-tech companies in merger & acquisition deals and initial public offerings, as well as buyout deals, from 2012 to H1/2017. However, the total sum of Israeli acquisitions by Israeli firms is still only 21% of 2016’s average annual amount.

Inside ExactTarget's Journey: From IPO to $2.5 Billion Acquisition

Inc Startups

CEO Scott Dorsey has guided his company along a path few others reach--from start-up to IPO to getting acquired by a giant. Very few entrepreneurs manage to take a company from start-up to IPO--much less to acquisition. Let''s talk about the acquisition.

An IPO Exit Strategy Puts the Entrepreneur at Risk

Startup Professionals Musings

Even though the Initial Public Offering (IPO) alternative for a successful startup seems to be coming back into vogue, it is relatively rare. IPOs in 2008, the market was up to a still trivial 159 in 2011. entrepreneur startup liability risk IPO business

When A Startup Chooses IPO Most Founders Are Out

Startup Professionals Musings

Even though the Initial Public Offering (IPO) alternative for a successful startup seems to be coming back, it is relatively rare. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996). business entrepreneur exit founder IPO startup

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Insuring Directors And Officers Through M&A And IPO Events

YoungUpstarts

Corporate transactions including mergers and acquisitions (M&A) and initial public offerings (IPO) bring necessary capital and resources to a growing company. Do IPOs also necessitate an additional policy?

Planning for the Future: Your Exit Strategy

Up and Running

We will cover them in more depth below: Acquisition. Initial Public Offering (IPO). Acquisition: The acquisition is often known as a “merger and acquisition.” An acquisition or merger does not have to happen on a big scale.

What the Facebook IPO means: 10 things

This is going to be BIG.

3) It will get much harder for Facebook to recruit talent, since the promise of the pre-IPO stock pop is gone. Bigger acquisitions? 1) Expect the angel and seed stage market to continue to stay hot. Newly wealthy Facebookers will likely contribute massively to early stage companies, which means building relationships with companies early and actually rolling up sleeves to add value will be a must for investors. If you're just money, you are toast.

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Exits in Israel 2011: IPOs Pool is Dry, Buy M&A Activity up 134%

VC Cafe

In the last decade, Israeli high-tech companies raised approximately $15 billion from investors, compared to more than $37 billion received in M&A and IPO exits, according to the latest IVC report. M&As and IPOs of Israeli High-Tech Companies $b (2002-2011).

Lessons Learned from Bill Gross' 35 IPOs/Exits and 40 Failures

Redeye VC

billion and 35 successful IPOs/acquisitions – and that’s just since 1996. Discuss on Hacker News As the founder of Idealab, Bill Gross has advised and helped fund more than 100 companies, been involved with 300 rounds of financing of more than $3.5

How founders get paid: non-strategic acquisitions, dividends, and private islands

The Startup Toolkit

The company becomes valuable and someone buys the whole thing (acquisition). It gets very big and very valuable and you go public (IPO). 5mm/year) and someone buys you to add that revenue to their portfolio (revenue-based acquisition).

Twitter Files for Secret IPO

Inc Startups

Naturally, the news came by tweet: We’ve confidentially submitted an S-1 to the SEC for a planned IPO. In recent months, Twitter has made a number of acquisitions that seemed to indicate its interest in proving its revenue-generating potential to the market.

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After Facebook's IPO flub, value of tech startups falls back to earth

www.theverge.com

After Facebooks IPO flub, value of tech startups falls back to earth. Over three nights and two days of drinking, schmoozing, and panel discussion, many of the industries insiders spoke their minds plainly, and the bumbled Facebook IPO was a frequent topic of conversation."Excuse Login.

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6 Challenges In Going Public Through The Backdoor

Startup Professionals Musings

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

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Facebook IPO repurcussions

Start Up Blog

The upcoming Facebook IPO is a very interesting scenario. There are a lot of facts and figures being thrown around, but from my point of view I’m interested in just a few of them and what they mean for tech entreprepreneurs: 100 Billion Valuation: If the IPO is successful the expected valuation is 33 times their current revenue. 68 Million in acquisitions: In the past year Facebook invested $68 million in purchasing other companies.

Facebook IPO repurcussions

Start Up Blog

The upcoming Facebook IPO is a very interesting scenario. There are a lot of facts and figures being thrown around, but from my point of view I’m interested in just a few of them and what they mean for tech entreprepreneurs: 100 Billion Valuation: If the IPO is successful the expected valuation is 33 times their current revenue. 68 Million in acquisitions: In the past year Facebook invested $68 million in purchasing other companies.

Why 2017 Is Going to Be a Big Year for IPOs

Inc Startups

explains why he's optimistic the new year will bring a wave of public offerings and merger and acquisition activity Mike Wilkins, managing director at investment bank Harris Williams & Co.,

From Founder to Employee: The Surprisingly Smooth Post-Acquisition Transition

Inc Startups

Some (even after a successful IPO ) are acquired by other companies and their founders stay on to help continue what they started. I talked to Michael and Marcel about the journey from startup to acquisition and beyond. When you considered various exit strategies, was an acquisition part of the mix? Marcel: I had done an IPO in 2000. See an acquisition not as an ending but as the beginning of a new phase.

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IPO or M&A? Here’s exactly how large companies exit

Seth Levine's VC Adventure

The graph below shows the trend of exits – IPO vs. M&A over the past handful of years (side note here that Foundry, like many firms, considers an IPO a financing event, not an exit in and of itself; although obviously it can be a path to an exit shortly thereafter).

Smart Entrepreneurs Plan Ahead For A Startup Exit

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company. entrepreneur exit IPO lifestyle m&a startup

Is A Reverse Merger The Way To Fund Your Startup?

Startup Professionals Musings

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

Why Facebook Clearly Belongs in the 10X Revenue Club

abovethecrowd.com

Brief disclosure, Benchmark Capital has a minority position in Facebook as a result of the acquisition of FriendFeed, a company that was incubated in our offices. Facebook Internet IPO Uncategorized Venture Capital Web/TechAttached are my thoughts on the Facebook S-1 along with some quick stabs at valuation. I thought it would be useful to look at Facebook using the scorecard from our [.].

Journey From Start-up to IPO

Inc Startups

The public aspects of a start-up's path to IPO are often well documented. So when did you start thinking about an IPO as a realistic goal? So I was always hesitant to make an IPO a goal.

For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

Even still, in the context of all three points, I recommend that you evaluate the most common exit alternatives and considerations, and integrate the right one into your startup strategy and plan: M&A - merger or acquisition by another company.

Who's Next on Twitter's Acquisition List: 4 Predictions

Inc Startups

With more than $2 billion in its post-IPO coffers, Twitter may go shopping for start-ups. billion in its IPO a few weeks ago. Various acquisitions, including the 2011 purchase of BackType, have given Twitter plenty of in-house expertise for crunching the numbers.

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All Signs Point to 2014 Twitter IPO

Inc Startups

Turns out, Twitter is putting all the right wheels in motion to IPO in a year. More recently, in January 2013, Costolo said that an IPO was "not necessarily inevitable." But we expect an IPO in mid-2014." The market is good for IPOs," Ethridge asserts.

These 13 Tech Companies Sold for More Than $1 Billion (And They Aren't Your Typical Silicon Valley Startups)

Inc Startups

These 13 "unicorn" exits were or acquisitions or IPOs at valuations of more than $1 billion, and they were all from tech companies beyond the coasts.

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Facebook Pulls Off Largest Tech IPO Ever

Inc Startups

It is the largest VC-backed tech IPO ever—10 times bigger than Google's IPO in 2004, and the third largest public offering in the history of the United States, just behind General Motors and Visa.

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. Usually a small company can sell about 20 percent of its stock in an IPO. Do you need the IPO for your acquisitions strategy?

7 Painful Surprises When Taking Your Company Public

Startup Professionals Musings

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to decrease, I still hear it touted often as the preferred exit strategy. In fact, IPOs are down again this year, with just 31 companies going public in the U.S.

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B is for BUBBLE: Venture Capital in 2013

VC Cafe

last year, more than any other major index), and the IPO market is booming. Last year, the VC industry partied like its 1999. New data from research firm Pitchbook makes it official: valuations are at an all-time high. Some of the frenzy is driven by Wall Street.

Entrepreneurs: What's Your Exit Strategy? - allensblog - Typepad

Allen's Blog

In the old days of Silicon Valley, there were two possible ways for startups to "exit":  (1) an IPO and (2) and acquisition.    One couldn't (and still can't) really build a valuable startup in a way that maximized the chances of an IPO vs. an acquisition.    Even without the impact of the recent Facebook IPO, there hasn't been a real IPO market for technology startups for years. allensblog.

Is the IPO Party Over?

Inc Startups

By all rights, Curt Richardson should at least be thinking about an IPO by now. An IPO could be just a few years down the road--except that Richardson has other ideas. "We Richardson says there are plenty of ways to get growth capital without resorting to an IPO.