Comments on: IPO Drought Hides Bigger Tech Woes

By: Despite Thaw, Floodgates Could Stay Locked for Cleantech IPOs

Despite Thaw, Floodgates Could Stay Locked for Cleantech IPOs — Mon, 26 Oct 2009 20:28:28 +0000

[...] Since then, there has been a major IPO drought for the technology industry at large — not just cleantech — a trend that “really stymies some of the larger startups with sizable revenues and some profits, and limits their options for creating an exit event that brings in much-needed capital but also rewards the employees,” as Om put it over on the GigaOM blog. [...]

By: Tech Newz » VC Valuations: What Went Up Has Come Down

Tech Newz » VC Valuations: What Went Up Has Come Down — Tue, 07 Jul 2009 21:23:25 +0000

[...] already know — the irrational exuberance appears to be leaking out of the venture industry as exits stay scarce and returns stagnate. Basically, a whole lot of startups had to go back to their venture backers [...]

By: VC Valuations: What Went Up Has Come Down

VC Valuations: What Went Up Has Come Down — Tue, 07 Jul 2009 20:29:31 +0000

By: Could Facebook and Twitter Go Public?

Could Facebook and Twitter Go Public? — Fri, 19 Jun 2009 00:55:47 +0000

[...] that while we can giggle about the vagaries of technology insiders, the fact remains that the lack of public market exits is a systemic problem that needs to be solved if the technology industry is to return to normal. As [...]

By: Don’t Blame Venture Woes on the Economy; It’s the VCs’ Fault

Don’t Blame Venture Woes on the Economy; It’s the VCs’ Fault — Wed, 10 Jun 2009 04:02:49 +0000

[...] could be started for less and sold more quickly — but also for less money. As it became tougher to take companies public and deliver outsized returns, some VCs started thinking about how to deliver decent returns even if [...]

By: VCs Find It Hard to Raise Money, Too

VCs Find It Hard to Raise Money, Too — Mon, 13 Apr 2009 15:53:34 +0000

[...] a matter of debate: Some argue there’s too much money in the space, and others argue that the days of huge IPOs are a thing of the past. One way or another, one result of this downturn could be the culling of venture firms that should [...]

By: Om Malik

Om Malik — Wed, 21 Jan 2009 19:58:56 +0000

@Alan

I think you make a very valid point and unfortunately that is very true. I don’t think the market is coming back anytime soon, however, as the last slid shows, we need to think in terms of longer term solutions to these problems.
Unless we address those issues, there is little chance you can expect VCs to pump money into real-big ideas and instead they will keep pushing money into the marginal startups, that require relatively little cash.

By: Readings 01/21/09 | Venture Capital Bloggers Network

Readings 01/21/09 | Venture Capital Bloggers Network — Wed, 21 Jan 2009 19:26:04 +0000

[...] IPO Drought Hides Bigger Tech Woes (GigaOm) [...]

By: IPO Drought Hides Bigger Tech Woes | Telecom Update

IPO Drought Hides Bigger Tech Woes | Telecom Update — Wed, 21 Jan 2009 14:07:07 +0000

[...] IPO Drought Hides Bigger Tech Woes [...]

By: Alan Wilensky

Alan Wilensky — Wed, 21 Jan 2009 13:23:40 +0000

One the one hand, the underwriter’s climate is badly deteriorated. One the other hand, even if one could seduce a market maker, the public’s appetite for for new issues may have been damaged along with their hunger for regular ole dow stocks. When was the last time we saw the major market indices and gold drop in lockstep?

By: Shankar Saikia

Shankar Saikia — Wed, 21 Jan 2009 11:40:54 +0000

RUNNING A GOOD BUSINESS OR IPO

While it does not surprise me that many folks are lamenting the lack of IPOs, one must keep in mind that if one is running a business one needs to run a good business (i.e., grow revenue, lower expenses etc.). I am not just trying to state the obvious. Sometimes Silicon Valley companies are so focused on an exit to reward employees, VCs etc. that they forget to focus on the fundamentals of running a business. I understand that technology markets are dynamic, things change and so profits are elusive at early stages. However, one needs to keep in mind that an IPO is actually a financing event, not just a liquidity event – i.e., the goal of an IPO is to raise capital.

We all hope that new technologies are developed and that therefore capital is available to bring these technologies to market. But also keep in mind that companies need to focus on managing their businesses!

By: Jon

Jon — Wed, 21 Jan 2009 11:14:14 +0000

I agree with most of this but the drought may also be the results of higher standards before releasing an IPO… people aren’t into all the hype as they use to be regarding tech stocks.

Jon
Doubling my money, one stock at a time

By: Wyatt

Wyatt — Wed, 21 Jan 2009 07:04:57 +0000

This raises a very good point which entrepreneurs seem to be forgetting about company exits: unless you’re planning an IPO imminently, by the time you’re ready the market will be out of the recession. Just don’t collapse too soon.