Are IPOs dead? Not hardly, says Durham venture capitalist
Related Blog Posts
- Ask ChannelAdvisor's Scot Wingo: Evaluating your big idea
- ExitEvent News: Software talent isn't that hard to find
- Forget business networking - build personal relationships
- Building a startup in the Ukraine? Yes, Durham entrepreneurs say
On The Web
Editor's note: John Cambier is managing partner at IDEA Fund Partners in Durham, an investor in 17 companies (one acquired), 11 in the Triangle.
DURHAM, N.C. - In the past couple of years, an unprecedented number of venture-backed companies have closed financings of $100M or more at valuations above $1 billion. This phenomenon has led to grumbling by some—most notably, Silicon Valley venture capitalist Marc Andreessen—that the “IPO is dying” and that individual investors are “missing out” on what used to be great opportunities to ride exciting young companies from their IPOs onward.
His reasoning is that stifling regulations make it costly and burdensome to run a company with publicly-traded stock. He names Oracle and Microsoft as two examples of companies that went public early and provided a great return for early public shareholders, but likely would have gone out much later in today's environment.
While the large private financings are happening (selectively) and the regulatory burden for public companies is greater today than it was 20 years ago, the dire situation Mr. Andreessen describes just isn't reality.
Please Log In to add a comment.
Best of TechWire Insider
- Is Charlotte really the Silicon Valley of the South?
- Do Apple, Google changes ensure privacy? National Law Journal says no
- New wave of 'undisclosed investors' now powering NC tech startups
- IBMers react with anger, sarcasm at 10% pay cut
- Google offers $100,000 to help startups reach the 'cloud'
- NC high-tech job market stable; more openings expected this fall
- You 'have to be tough' and other advice from Women in Power
- New CED communications exec targets 'galling' lack of coverage
- UNC-Wilmington, two Charlotte 'accelerators' land $50,000 federal grants
- 'Fury' at discrimination drives 'Innovating Women' book by Vivek Wadhwa