Is Your Startup Ready For The Challenges Of An IPO?

Startup Professionals Musings

With the recent apparent successes of several startups in taking their company public (initial public offering) and raising billions of dollars, I’m hearing a groundswell of enthusiasm from new entrepreneurs to follow in their footsteps to fund their companies and become billionaires overnight.

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

Version One Ventures

But, marketplaces can face a binary outcome at the other end too: either you scale your marketplace into a large, stand-alone company that can go public, or you find yourself with few other exit options. News eBay Etsy Exit Initial public offering Marketplace marketplaces StubHubIt’s typically a binary outcome for marketplace start-ups at the beginning: either you figure out the chicken-and-egg problem or you don’t.

Trending Sources

Here's Why More Initial Public Offerings Will Look Like Square's

Inc Startups

Fenwick & West tracks an increase in so-called down rounds, and with them, protections for private investors

How we determine valuations for marketplaces

Version One Ventures

Bessemer offers a good overview of current valuations for different business models: SaaS, marketplaces, consumer, and ecommerce. News eBay Etsy gross merchandise value Gross merchandise volume Initial public offering marketplaces Online marketplace Valuations

Please respect outstanding entrepreneurial achievements

Version One Ventures

Blue Apron went public today. Zulily suffered from a similar negative narrative: when it got sold to QVC for $2.4b, some people called the exit disappointing given that the company was once valued at over $7b in the public markets. News Blue Apron Initial public offering IPO ZulilyIt was not the easiest road for them as they had to cut the originally proposed price range of $15-17 to $10 and closed the first day just around that at $10.01.

Jim Armstrong’s Take on LA Tech–It’s Past and It’s Future

Wired Wired West

Uncategorized Who Angel investor Clearstone Venture Partners Coworking Entrepreneur Initial public offering Jim Armstrong Jim Jonassen Los Angeles Silicon Beach Silicon Valley SnapChat Tech Startups ThursdayNights Venture capital This is far from an old school locker room. No wooden benches; no metal lockers. No chalkboard. The event space above Gjelina, a high-end Venice restaurant, is hardly the place where you’d expect a locker room styled chalk talk.

Limiting the Number of Shareholders in Private Companies


The assumption has been that companies with 500 investors are quasi-public anyway, and for disclosure and other reasons should be forced to go public when the shareholder number approaches this limit. This shareholder limitation has made it difficult for companies like Facebook to stay private, even if the shareholders and management team were not inclined to go public. The U.S.

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Yext Is Set to Raise More Than $115 Million in Its IPO

Inc Startups

The knowledge engine priced its initial public offering at $11 on Wednesday.

A long time ago in an economy far, far away.


Their miniscule floats are tightly managed to artificially inflate the offering price and maintain it briefly; then, a slow (or sometimes fast) descent to earth begins. Make no mistake: even if Facebook goes out near its absurd $100 billion target, the odd exception cannot possibly justify a rationale expectation that your new startup will eventually make its way public. Listen my children and you shall hear. Of IPO dreams once held so dear.

Chicken Soup for the Soul, Backed by Ashton Kutcher, Goes Public

Inc Startups

The media company, known for the book series of the same name, launched an initial public offering on Nasdaq. Media

How Snapchat Became a $20 Billion Business In 5 Years

Inc Startups

The image messaging app filed for an initial public offering that could value the company at $25 billion. Here's how it got there

Comparing Two SaaS Models: Hubspot and Moz

Version One Ventures

Since investors (whether private or public) like to see growth, Hubspot’s story is more impressive from that standpoint. News Hubspot Initial public offering IPO Moz Software as a service Unbounce Rick Perreault of my portfolio company Unbounce recently called my attention to an interesting comparison between two SaaS models: Hubspot & Moz – A Tale of Two (Very Different) SaaS Business Models.


"Even though the Initial Public Offering (IPO) alternative for a successful startup seems to be."

Mark Birch

“Even though the Initial Public Offering (IPO) alternative for a successful startup seems to be coming back, it is relatively rare. After a record low of 39 U.S. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996). Even in most of these cases, the original startup founders were pushed out, or heavily supplemented, with “experienced” executives.” - “ When A Startup Chooses IPO Most Founders Are Out " via Gust blog.

IPOs Take a Breather in Q1, But the Year Is Young

Inc Startups

A report on initial public offerings shows a substantial decrease in the first quarter, although other indicators remain strong

Bazaarvoice Stock Opens Trading Today

Austin Startup

It’s the first Austin tech company to go public this year, with the most recent Austin tech IPO being HomeAway. The company initially looked an a $8 – $10 price for the stock, but it priced last night at $12 with initial trading this morning at around $16. Enterprise austin Bazaarvoice Initial public offeringAfter filing their registration statement in August, Bazaarvoice began trading on the NASDAQ today.


The U.S. IPO Market is Seeing a Slowdown in 2016


The good news is there is an Initial Public Offering or IPO market, said Daniel Klausner, managing director of PricewaterhouseCoopers based in New York. “At At times, I think it’s been dormant or hidden,” he said. September has been a great month.” But overall the IPO market in the U.S. is on track to have the […] The post The U.S. IPO Market is Seeing a Slowdown in 2016 appeared first on SiliconHills. Austin

GoDaddy Is Going Public

Inc Startups

The Web hosting company is planning its second attempt at an initial public offering

Shake Shack Celebrates IPO With Free Burgers

Inc Startups

In honor of its initial public offering, the fast-food chain handed out thousands of ''Shack'' burgers at the steps of the New York Stock Exchange

Why Hands-Off Leadership Can Be the Most Effective Management Style

Inc Startups

Tobias Ltke, founder of Shopify, explains how he let his chief financial officer take control of the company's initial public offering process

Why Tech IPOs Are Stalling After Snap and Blue Apron Tumble

Inc Startups

editors and writers discuss how Snap and Blue Apron are now worth less after their initial public offerings andhow going public isn't as enticing as it once wasfor Silicon Valley's tech startups. This week, Inc.

Etsy Expects IPO to Raise as Much as $267 Million

Inc Startups

The initial public offering could value the crafts marketplace at up to $1.78 billion

Entrepreneurs: Due Diligence on Investors is Smart


Invested Interests advisors angel investment angel investors board board of advisors due diligence entrepreneurs entrepreneurship equity exit strategy fundraising initial public offering shareholders startups terms venture capitalDue diligence should always be a two-way street. A while back, I published an article on “ Startup Due Diligence Is Not a Mysterious Black Art ,” describing what investors do to validate your startup before they invest.

Wearables Maker Fitbit Files for IPO

Inc Startups

The initial public offering would be worth up to $100 million

6 Reasons Smart Entrepreneurs Think Twice Before IPO

Startup Professionals Musings

The visibility of Google, Facebook and a few others continues to propagate the myth that the ultimate objective of every entrepreneur should be to take their startups public via an initial public offering at the earliest opportunity.

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RetailMeNot Files its IPO Worth An Estimated $230 million


RetailMeNot has filed a registration statement with federal regulators for an initial public offering worth an estimated $230 million. The Austin-based online coupon site, formerly Whale Shark Media, has applied to have its stock listed on the Nasdaq market under the ticket symbol “SALE.” ” The company also reports that it is “an “emerging growth company” [.]

Update on America’s Slipping Global Competitiveness– Implications for Intellectual Property Development of Senate Bill 515

Pascal's View

Some excerpts follow, and you can download the entire speech and slides by clicking at the bottom of this post: “The absence of cohesion in American public policy can be seen in many areas—with cybersecurity coming immediately to mind.

VC Governance FAQ: (2) Especially now, when transparency is so important, why is limited financial information available from a private company?

Pascal's View

To conclude on this question, I’d like to emphasize that, in my view, for early stage companies with little or no revenue, valuation models driven by public equity or option inspired equity models simply make no sense.

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.

10 Steps To Investing Successfully In New Ventures

Startup Professionals Musings

It’s an opportunity for that “big bang” return of 10X to 100 times your initial investment, like early investors in Google, Microsoft, and Apple. The growth target should be 5-10 times your initial investment in five years.

Austin-based Aeglea BioTherapeutics Goes Public and Raises $50 Million


Aeglea BioTherapeutics went public on the NASDAQ Stock Market Thursday at $10 a share with an Initial Public Offering bringing in $50 million. a share. […] The post Austin-based Aeglea BioTherapeutics Goes Public and Raises $50 Million appeared first on SiliconHills.

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. ” Another explanation offered by Adv.

How Long Should It Take For a Startup to Succeed?

Startup Professionals Musings

Even still, it was another five years before Microsoft went public in 1986, making him an overnight success worth $350 million. had its initial public offering, raising $33.8 Every startup founder knows implicitly that startup success is a long hard road.

10 Reasons For Joining The New Startup Wave Now

Startup Professionals Musings

Initial Public Offerings (IPO) are back as an exit strategy. Conglomerates, which were the engines of growth and vitality in the twentieth century, have proven themselves unable to innovate, and have a tarnished public image due to financial woes and poor management.

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Ashton Kutcher Backs Box

Inc Startups

With help from the ''Two and a Half Men'' actor and music mogul Guy Oseary, the enterprise storage startup is eyeing Hollywood before its initial public offering. Although Levie remains mum about an initial public offering, he confidentially filed paperwork earlier this year.

8 Secrets To Credible Startup Financial Projections

Startup Professionals Musings

This means an acquisition or initial public offering that will generate at least five times your fifth-year revenues, at a commensurate equity ownership.

"Cheap Stock" And Section 409A Considerations For Pre-IPO Companies

Recent Buzzes - VC Experts, Inc.

Private companies that consider going public may not be aware of the overlap between Section 409A of the Internal Revenue Code and cheap stock accounting issues. If a company makes grants of equity awards prior to going public at share prices that are much lower than the initial public offering price, this could lead to accounting charges for the company.

SailPoint Files to Raise $100 Million in a Public Offering


SailPoint Technologies, founded in 2005, filed papers with federal regulators on Friday to raise $100 million in an initial public offering. The company plans to use the proceeds of its offering to expand operations and add additional customers. […]. The post SailPoint Files to Raise $100 Million in a Public Offering appeared first on SiliconHills.

The Next Bubble – Don’t Get Fooled Again

Steve Blank

A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin. Silicon Valley startups are falling over each other to file their S-1 documents to go public.

What You Need to Know About Going Public

Inc Startups

Randy Komisar, partner at venture-capital firm Kleiner Perkins Caufield & Byers, explains why most entrepreneurs are caught off guard when they go through an initial public offering

10 Keys To Giving The Right Entrepreneur Your Money

Startup Professionals Musings

It’s an opportunity for that “big bang” return of 10X to 100 times your initial investment, like early investors in Google, Microsoft, and Apple. The growth target should be 5-10 times your initial investment in five years.