Posts Tagged ‘IPO’

How to Build a Financial Crisis-Proof Business

Found|Read Carleen Hawn | Saturday, September 27, 2008 | 9:00 AM PT | 6 comments

We’ve written recently about how bootstrapping founders can help themselves navigate a very tight credit market. Now, the implosion of the investment banking industry promises to level what was left of the landscape for both IPO and M&A exits. Startup founders would be wise to reassess their strategic priorities.

With fewer opportunities to cash out of their current and future portfolio companies, the agendas of angels and VCs will also shift. Founders who are raising funds will certainly want to revamp their pitch decks, if they are to have any success raising capital in the current climate.

But how? What should a startup founder put on that slide in their investor presentation that addresses potential future outcomes? How can founders adjust their messaging to demonstrate to VCs that they have their strategy aligned with the needs of the investing community now? We asked Faysal Sohail, the managing partner with CMEA Ventures, for advice. Here’s what he had to say. Continue »

Question of the Day: Wanna go Dutch?

Found|Read Carleen Hawn | Friday, December 21, 2007 | 3:01 PM PT | 0 comments

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NetSuite went public Thursday in a Dutch auction, meaning its shares were priced through an auction of would-be buyers, not by a handful of investment bankers, as is the process in a traditional IPOs. (NYSE: N)

Bankers tend to under price IPOs by a few bucks to guarantee their clients a quick pop in value on the day the shares debut. Trouble is, the “clients” best-served by old-school IPOs are the institutional investors and wealthy brokerage customers with friends on the bank’s syndicate desk — NOT the hardworking founders of the company, who are made to sell their equity at a discount to give others that instant upside.

Using open bidding, Dutch auctions aim to price equity “fairly.” The idea, first notably used by Google, was actually hatched by veteran Silicon Valley banker, William Hambrecht, of WR Hambrecht & Co. (We’ll interview Mr. Hambrecht on Found|WATCH in January, so stay tuned for more from this thought leader.)

Dutch auctions haven’t gained much momentum yet, but given NetSuite’s performance, they might finally catch on.

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Priced at $26, shares soared 77% in their first two days, closing Friday near $39. But this, then, begs our…


Question of the Day:
Despite the Dutch auction, could the post IPO run-up mean NetSuite founder, Evan Goldberg, left money on the table anyway?
Continue »

Jive Software Dreams of an IPO

Om Malik | Sunday, November 25, 2007 | 7:40 AM PT | 6 comments

(Updated) Portland-based Jive Software, an enterprise collaboration software company we have covered in the past is dreaming of an IPO, perhaps as early next year, CMO Sam Lawrence tells John Cook. The 90-person, six-year-old company is hoping to close out 2007 with revenues of about $17 million. Jive’s main competitor is Microsoft’s SharePoint.

PS: Sam Lawrence left a comment that points out I miss the nuance, mostly because of what I read on John’s blog.

5 Tips To Spot A Hot (or Not) IPO

Kevin Kelleher | Friday, September 28, 2007 | 12:06 AM PT | 6 comments

The floodgates are back open for tech IPOs. Since August – a seasonally sluggish month compounded this year with market turmoil – VMWare (VMW), MercadoLibre (MELI) and athenahealth (ATHN) went out with ecstatic receptions. The pipeline could start getting crowded.

There have been notable fizzles as well: HireRight (HIRE) and Orbitz (OWW) are below their offering prices. So this seems as good a time as any to trot out the old lectures about doing homework and reading prospectuses.

Okay, I’ll spare the lecturing, and instead offer five tricks I’ve found that can speed up the evaluation of IPO candidates and shorten the slog through hundreds of pages of legalese. These have worked for me, but are far from definitive. If you have others please share them below. Continue »

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