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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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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Trending Sources

Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO


Every successful technology company raises money throughout its lifecycle, perhaps starting with a seed investment and progressing through Series A, B, C, late-stage investments, and, for the most successful companies, an IPO. This was the recent case with the Box.com IPO.

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Yeti Holdings, Inc. Consumer IPO


If you are banking on college orders you need to have made a serious ding in the wholesale promo market Pre-IPO, and since that has not occurred yet, I bet it will never occur. equity going public Investment Banking IPO IPOs q3 2016 ipo q4 2016 ipo rants Yeti Holdings

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There Aren't Many Venture Backed IPOs

A VC : Venture Capital and Technology

As a follow up to yesterday's pos t on this topic, here's another chart from Mark Suster :   So using the math I laid out yesterday (roughly 1,000 startups funded each year by VCs), this means that on average between 1% and 3% of venture funded startups get to an IPO.

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Square IPO: Is Square A Good Payments Business?

Agile VC

Square filed its S-1 several weeks ago and is now in the middle of its IPO road show process. Anyone who’s familiar with the IPO process knows that companies state an “initial” range as they begin their road show.

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Zero to IPO: Lessons From The Unlikely Story of HubSpot


Went from zero to IPO. Zero to IPO: Lessons From Unlikely Story of HubSpot from. HubSpot has had a pretty good run. What's not known is how unlikely the story of our success is. II gave a talk at the 2016 SaaStr Conference hosted by Jason Lemkin.

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Some Thoughts On The IPO Market For Web Companies

A VC : Venture Capital and Technology

We have an IPO market for web companies again. I don't have all the names in front of me, but this year has brought IPOs for Pandora, LinkedIn, Groupon, Zynga, and TripAdvisor. Mike Moritz calls these financings the "new IPOs" This "new normal" is allowing these companies to stay private and develop into real businesses. The IPO market for web companies we have right now is rationale. Tech IPOs Just Ain't What They Used To Be (techcrunch.com).

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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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Some IPO speculation

Startup Lessons Learned

Lessons Learned by Eric Ries Thursday, July 15, 2010 Some IPO speculation Inspired by Steve Blank’s post today about the “lost decade&# of IPO’s , I’d like to make some predictions. The fact that IPO’s are disappearing makes intuitive sense to me.

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The TripAdvisor IPO

Chris Dixon

It’s weird how little coverage this IPO got and how the financial press missed the interesting stories. - Great startup story. Raised a total of $4.2m in venture capital, sold to IAC/Expedia for $210M, and had some interesting adventures and pivots along the way. They started out by trying to aggregate reviews from other websites and white label their product to Expedia and other large travel websites. TripAdvisor.com was just a showcase that accidentally became a destination site.

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


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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Will Your Startup Get Venture Capital or IPO in 2013?

Startup Professionals Musings

Based on the final report for 2012 from Thomson Reuters and the National Venture Capital Association (NVCA), it may appear that IPOs are back as a viable startup exit strategy. billion from 49 listings, and represented the strongest annual period for IPOs since 2000.

4 Strategy Rules for Interpreting Snap's IPO

Inc Startups

Understanding the fundamentals of digital strategy can help interpret big events like Snap's IPO and their proposed strategy. Avoid the mis-steps so common in a digital era by understanding these four fundamental principles

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The Sub $1bn Revenues IPO Act

A VC : Venture Capital and Technology

  The name is too long so I call it the "sub $1bn IPO bill." Will Sarbanes-Oxley Changes Help The IPO Market? There's a bill in Congress to reduce the regulatory burdens for public companies that have less than $1bn in revenues and/or have been public for less than five years.  " This is a good bill. This undoes some of the bad stuff done to smaller public companies in Sarbox. It should become law. I hope it will. Here are some blog posts on this topic.

10 Reasons Why IPO Is No Longer A Good Startup Exit

Startup Professionals Musings

Today the rate of startups going public (IPO – Initial Public Offering) is at an all-time low, and most entrepreneurs avoid this option like the plague, knowing the process is painful, and public company executives are seen as greedy sharks.

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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

IPOs, M&As, Liquidity, & You. (the entrepreneur)


If the company was successful, this quickly led to an IPO – a very happy ending for the entrepreneur, the angels, and the venture capitalists. The two major differences in the exit environment in the past decade are (1) the disappearance of the IPO market and (2) the rapidly increasing size of the average VC fund. Larger VC rounds and the lack of early IPOs have also resulted in substantially longer pre-exit waiting periods for venture capitalists.

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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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Snap Files for IPO, Seeks to Raise $3 Billion

Inc Startups

The highly anticipated IPO could be the one of the largest since that of Alibaba Group in 2014

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The Day I Had To Wear Pants To Ring The IPO Bell


Earlier this year, HubSpot decided to publicly file our S1 document as part of the IPO process. On October 9th 2014, after our IPO roadshow, I had the thrill of joining a few HubSpotters and ringing the bell on the NYSE. It''s #TBT. It''s been a busy and exciting several months.

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From idea to IPO in 12 months

The Next Web

Earlier this year, I released the book Progressive Partnerships – The Future of Business. The central tenant of the book was that we are moving away from competition and into a period of collaboration.

On IPOs: If You Are Going To File, Make Sure You Price


As you likely know, I am a big believer that the IPO can play a key role in the development of a company’s life. Lastly, I have argued that the IPO window is wide [.]. Internet IPO UncategorizedMoreover, I have argued that many in our ecosystem have an unhealthy anxiety regarding the dangers and consequences of being public.

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Andreessen Horowitz: No bubble but rebalancing from IPO to late stage venture

The Equity Kicker

But second there has been a big shift from IPOs to late stage private rounds. Investors in these late stage rounds are traditionally public market investors who have moved to the private markets because companies are going public later and the returns are now pre-IPO.

Yext Finally Files for an IPO

Inc Startups

Documents reveal the company generated a net loss of $26.5 million last year

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Facebook IPO Lessons

Venture Chronicles

Like most people, I had the opportunity to review Facebook’s IPO filing yesterday and admit that, like Apple’s recent earnings announcement, this is pretty damn impressive. Entrepreneurship Facebook IPO Silicon Valley VCHere are a couple of lessons worth reinforcing: 1) People’s view of what is normal and acceptable in emergent online activities is constantly evolving.

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The Secret to Atlassian's Successful $460 Million IPO

Inc Startups

Collaborative software maker Atlassian had one of the strongest IPOs of 2015. Here's why the company outperforms in spite of its competitors

These 9 IPOs Changed America

Inc Startups

Wall Street marks historic IPOs by whose was biggest, but there's another yardstick for success

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Hiring for Fit Gets You to IPO, but Over Time, Hiring for Potential Wins

Hunter Walker

But since the goal of a startup isn’t to “not fail,” but rather to succeed, here’s the correlation between these org models and IPO. BUT what happens post IPO?

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5 Presentation Tips From Snap's IPO Roadshow

Inc Startups

So does its 35-minute IPO presentation Snapchat represents the intersection of communication, creativity and storytelling.

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Why European IPOs Are Surging In 2017

Inc Startups

Once risk-averse, a growing number of E.U. founders are taking their companies public. 5000 Europe

How Facebook maximized the IPO proceeds, but botched the process

Don Dodge on The Next Big Thing

Most companies leave a lot of money on the table when they IPO. They price at $12 to $15 per share at the IPO and trade up to $20 - $25 on the first day, and up to $30 to $40 over the next few months. But, by doing so they disrupted the age old IPO process.

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Shooting for an IPO? Take These Steps Now Before It's Too Late

Redeye VC

The media went wild, and the company’s subsequent public market success helped pave the way for the Facebook and Twitter IPOs. billion IPO, and he’s helped steer others like SuccessFactors and Nimble Storage to successful offerings too. If he’s learned one thing from his near two decades of experience, winning IPOs requires careful preparation and foresight from the beginning (as in, never too early).

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Bobby Flay's Fast Casual Burger Palace Is Launching an IPO

Inc Startups

and plans to expand globally with funds from the IPO. Bobby's Burger Palace has 17 locations in the U.S., Food and Beverage

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. 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).

Putting Twitter’s IPO in Perspective

Agile VC

Twitter’s IPO has garnered a ton of attention in the tech and popular press. So their revenue figures, pre IPO financing and ownership, and other info is all widely available. Growth IPOs Are Back.

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Groupon's IPO Missteps

Inc Startups

It's been a rocky road to going public for Groupon, which has faced scrutiny from investors, analysts, and the SEC leading up to its October 24 IPO road show. September 6: Amid a volatile stock market and growing scrutiny from the SEC, Groupon pulled its IPO off the shelf.

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Why Hasn’t NYC Produced More IPOs (While Boston Has)?

Seeing Both Sides

Over a year and a half ago, I did a two-part blog post on the East Coast IPO malaise – one focused on Boston (Massachusetts more broadly), another focused on New York. On the heels of the successful Kayak IPO, I thought I would do a retrospective look back.

Insuring Directors And Officers Through M&A And IPO Events


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?