article thumbnail

10 Realities Today Cause Startups To Bypass An IPO

Startup Professionals Musings

Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

IPO 210
article thumbnail

10 Negatives That Still Make Going Public A High Risk

Startup Professionals Musings

Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

IPO 218
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10 Real World Hazards With Taking Your Startup Public

Startup Professionals Musings

Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

IPO 245
article thumbnail

Taking Your Startup Public Is Fraught With Negatives

Startup Professionals Musings

Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

IPO 120
article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. One of the reasons that RBI VC is growing in both feasibility and popularity is that more businesses are becoming metrics-driven , which means that investors have better line of site on their future revenues.

Revenue 60
article thumbnail

10 Reasons Why IPO Is No Longer A Good Startup Exit

Startup Professionals Musings

Startups are typically run by a couple of executives who are reluctant to disclose via the prospectus and SEC reports all the decision-making criteria, operational financial details, and compensation formulas. Thus, there is tremendous pressure to increase current earnings, and little appetite for strategic investments.

IPO 242
article thumbnail

Don’t Pitch A Venture Capitalist Without This Checklist

David Teten

Business Model. If you’re talking with an investor competent enough that you’d want her to invest in you, that investor will also be competent enough to surface the negative information you’re trying to hide. By surfacing the negatives early, you help establish a relationship of mutual trust and respect. How do you make money?