Hot take #1:
If you don't need to raise capital, a direct listing probably makes sense.
If you need to raise capital, like UBER, LYFT, SNAP, etc then an IPO probably makes sense b/c the process raises capital. Otherwise you have to do an offering post price discovery and 🤷♂️
If you don't need to raise capital, a direct listing probably makes sense.
If you need to raise capital, like UBER, LYFT, SNAP, etc then an IPO probably makes sense b/c the process raises capital. Otherwise you have to do an offering post price discovery and 🤷♂️
Hot take #2:
Money losing SAAS IPOs are well received today because there is precedent for the biz models scaling.
Money losing "Neither/new" (h/t @benthompson) co's aren't well received b/c there's no precedent and the companies have done a terrible job of providing evidence
Money losing SAAS IPOs are well received today because there is precedent for the biz models scaling.
Money losing "Neither/new" (h/t @benthompson) co's aren't well received b/c there's no precedent and the companies have done a terrible job of providing evidence
It's possible some of the businesses people are skeptical of today will turn out to be great; 5 years ago SAAS model was more in question and those IPOs came at much lower valuations. The "Neither/news" need money tho, so are at the mercy of markets, and did themselves no favors.
