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

abovethecrowd.com

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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Trending Sources

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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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?   There are only very few public technology companies based in NYC:  I count AOL as the only one with > $1 billion market capitalization, whereas Boston has 30-35 innovation economy companies with greater than > $1 billion market capitalization.  The Boston IPOs that were stated in this post were started before 2007 I believe.

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Rally Software Acquired By CA Technologies for $480 Million

Feld Thoughts

Congrats to my friends at Rally Software on the announcement that they’ve signed a definitive agreement to be acquired by CA Technologies for $480 million. Rally started out life as F4 Technologies. Million To The Boulder Community after their IPO. The post Rally Software Acquired By CA Technologies for $480 Million appeared first on Feld Thoughts.

Unshackle the Middle Class

Marc Andreessen

From IPO, a single share of Microsoft stock has appreciated close to 500x. If you bought Facebook stock at its IPO, to realize a similar multiple that Microsoft’s public shareholders have earned, Facebook’s market cap would need to reach nearly $50 trillion, roughly the size of the total market capitalization of all publicly-traded companies in the world. The average age of the companies at the time of IPO was just under five years old.

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).

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.

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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Some Quick Thoughts on Exits for Technology Startups

Both Sides of the Table

There simply aren’t a lot of exits above $100m or even IPOs. Later today I’m presenting at the annual Rincon Ventures Summit in Santa Barbara. Startup Exits: A Primer from msuster. I thought you might like to see an advance copy of what I’m going to cover.

Dropbox Starts Preparing Documents for IPO

Inc Startups

TechnologyDropbox's last valuation was at $10 billion in 2014.

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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The Case for Staying Private (and Why IPOs Are Overrated)

Inc Startups

It’s increasingly rare to find a privately held, family-controlled business with a household name--especially in the technology sector. It''s certainly easy to get caught up in the allure of going public. There are plenty of compelling reasons to stay private.

Snap Reports $2.2 Billion Loss in 1st Quarter Results Post-IPO

Inc Startups

TechnologyEvan Spiegel still needs to figure out a way to compete with Facebook's strategy of cloning Snapchat's most popular features.

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Yeti Holdings, Inc. Consumer IPO

Chaganomics

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

Technology Leverage

Rob Go

Here’s what Kayak looked like when it went public: Kayak: IPO Market Cap: $1B, Revenue: $225M (2011), Employees: 185 (July 2012), Rev / Employee: $1.2M (Paul has quoted $1.5M, which makes sense given growth of the business in 2012). Lending Club: IPO Market Cap: $8.4B, Revenue: $98M (2013), Employees: 628 (2014), Rev / Employee: $156K. Zulily: IPO Market Cap: $2.6B, Revenue: $331M (2012), Employees: 886 (2013), Rev / Employee: $374K.

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On the Road to Recap:

abovethecrowd.com

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In late 2015, many public technology companies saw a significant retrenchment in their share prices primarily as a result of a reduction in valuation multiples. In Q1 of 2016 there were zero VC-backed technology IPOs.

A New Era For Entrepreneurs And Startups Has Begun

Startup Professionals Musings

Initial Public Offerings (IPO) are back as an exit strategy. That is a 65% increase in the number of IPOs over 2012, and the highest proceeds raised since the year 2000. Most now routinely buy startups for new technology and new products.

Founder Dilution

A VC : Venture Capital and Technology

I saw a blog post this weekend that looked at the IPO filings of 79 tech companies and calculated the ownerships of the founders and the VCs at IPO. The result of that analysis is that the average founder ownership at IPO was 17% and the average VC ownership at IPO was 56%. If you end up owning more than 20% at IPO, you are beating the averages. entrepreneurship VC & Technology

Twitter's IPO: What Marketers Need to Know

Inc Startups

Better grab a copy of the company''s S-1 IPO filing and read the fine print. Luckily, Twitter has filed for its IPO, which means a lot of financial information and other insight is suddenly public knowledge. Thinking of advertising on Twitter?

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.

What Is Going To Happen In 2017

A VC : Venture Capital and Technology

The IPO market, led by Snapchat, will be white hot. Look for entrepreneurs and the VCs that back them to have IPO fever in 2017. I expect we will see more tech IPOs in 2017 than we have since 2000. Tech investors will start to adopt genomics as an additional “information technology” investment category, blurring the distinction between life science and tech investors that has existed in the VC sector for the past thirty years. Happy New Year Everyone.

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Best Seed Pitch Ever

A VC : Venture Capital and Technology

I read yesterday evening that our portfolio company Twilio , which priced its IPO last night, is going to live code from the NYSE this morning. VC & TechnologyThat brought a powerful flashback to the first time I met Jeff Lawson , founder and CEO of Twilio. It was 2008 in our old offices on the 14th floor of the building we still work in. My partner Albert, who led our investment in Twilio, had met Jeff and was impressed with him and his vision for Twilio.

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Technology Trends: 10 Areas of Innovation to Watch for 2012

This is going to be BIG.

Election years tend to be good for technology diffusion. I hope they can get there, because it would be a major boon to the rest of the market for them to justify their lofty valuations and hopefully the valuations of exits and IPOs. Well designed services can be built more and more easily using off the shelf technology and outsourced development--if you know what you're building and why right off the bat--at least to start off with anyway. Tweet.

Why Alibaba's Giant IPO Could Launch U.S. Businesses

Inc Startups

accounting and oversight rules, really big IPOs are good for American startups, says venture capitalist John Backus, founder and managing partner of New Atlantic Ventures. IPO market. surrounding IPOs, Smith says. China leads the pack, but other countries are listing on 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.

The Tech Industry's First Big IPO of 2015

Inc Startups

A successful debut by Box in the technology industry''s first big IPO of the new year could encourage other hot startups to go public, even if they aren''t profitable yet

Care.com IPO and the Upromise Mafia

Seeing Both Sides

I was excited to see Care.com''s successful IPO yesterday for multiple reasons. . First, it augurs well for 2014 as another strong IPO year in genearl and for technology companies in particular.

How to Miss By a Mile: An Alternative Look at Uber’s Potential Market Size

abovethecrowd.com

By 2011, the number of subscribers worldwide had surpassed 5 Billion and cellular communication had become an unprecedented technological revolution.” ( article via @trengriffin ).

Day Before Opower IPO, SVP Product Alex Kinnier Reflects on Journey

Hunter Walker

In advance of the IPO I reconnected with their SVP Product & User Experience Alex Kinnier, whom I know from our days together at Google. I couldn’t ask Alex specifically about the IPO or future plans but wanted to get some more info on a company that gets less press than your typical social app but is poised for an amazing run. Energy efficiency company Opower is ready for its public debut this Friday.

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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.

Marissa Mayer Would Be a Terrible Choice for Uber CEO

Inc Startups

From her track record at Yahoo to her personal beliefs, Mayer is exactly the wrong person to fix Uber's culture problem and guide it to an IPO. Technology

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Some Perspective

A VC : Venture Capital and Technology

I don't disagree with PG when he says that Facebook's IPO performance (or lack thereof) has the potential to impact valuations in startup land. I think it will be particularly impactful on the late stage and secondary markets where most of the IPO valuation speculation is happening. Clearly Facebook is a premium company and commands a premium valuation and entrepreneurs should not expect to get 10x revenues and 25x EBITDA for their companies in a sale or an IPO.

New York Stock Exchange Will Hold Trial Run for Snap IPO

Inc Startups

The NYSE is hoping to avoid technological snafus similar to Facebook's IPO in 2012

The Value of Digital Transformation - What Is or Isn't "Tech"

Inc Startups

A tale of two IPOs, each with a very different ending. Technology

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After Facebook: 6 IPOs to Put on Your Radar

Inc Startups

Has Facebook reinvigorated the IPO market? On Friday, Facebook raised a record-setting $18 billion in its IPO, placing its value at a staggering $104 billion. Facebook's IPO will certainly cast a long shadow against the next wave of tech companies waiting to hit the markets.

Our Model

A VC : Venture Capital and Technology

They are: Zynga – IPO – 2011. Twitter – IPO – 2013. Lending Club – IPO – 2014. Etsy – IPO – 2015. Twilio – IPO – 2016. MongoDB – IPO – 2017. VC & TechnologyThis past week our portfolio company MongoDB went public. I think that occasion presents an opportunity to talk about USV’s model. We are a small firm. We raise modest sized funds (by modern VC standards).

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Unicorn Startup MongoDB Gears Up for Its IPO

Inc Startups

TechnologyPaperwork reveals the company isn't profitable yet, but its losses are narrowing.

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Kayak Set for IPO

Inc Startups

More than a year and a half after filing for an IPO estimated at $50 million, Kayak is finally preparing to go public. million from the IPO after deducting the financial services costs of going public. The travel booking website is expected to offer 3.5

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