Friday, November 6, 2009
The Sluggish Pace Toward an IPO
In light of Ancestry.com’s IPO today, tech site Vator.tv calculated the average age of the venture-backed tech companies that have gone public this year.
In light of Ancestry.com’s IPO today, tech site Vator.tv calculated the average age of the venture-backed tech companies that have gone public this year.
It all started with a “stupid” idea and a message about pinot noir.
Two of the founders of Twitter Inc., Evan Williams and Biz Stone, talked about how the micro-blogging service began, the challenges it faced and an eventual potential IPO, at Startup School, an event organized by Y Combinator held at the University of California-Berkeley on Saturday.
If you have been an investor in technology IPOs in recent months you’ve done well. Starting in April, and really gathering momentum this summer, there has been a slew of tech companies that leapt through the public market window including Changyou, Rosetta Stone, OpenTable, and most recently Emdeon.
Silicon Valley venture capitalists–who invest in startups with the aim of profiting later when those companies go public or are sold–have found it tough to produce returns recently.
Does Liberty Media want to own AOL?
CNBC’s David Faber raised the question this morning at the tail end of a long interview with Liberty Media CEO Greg Maffei.
Startup executives and employees haven’t had it easy cashing out of their private company stock since the IPO and M&A markets, which typically provide “liquidity” and a route to riches, have been relatively moribund in recent years. Spotting an opportunity, several companies have sprung up in recent months to try and provide startups with new avenues to liquidity.
Venture capitalists view the decision by e-book pioneer E Ink Corp. to sell out to a Taiwanese company as one more sign of the moribund IPO market.
E Ink, of Cambridge, Mass., would once have been a sure-fire candidate for an initial public offering. Its sales more than doubled to $18 million in the first quarter on the strength of rising sales of products like Amazon.com’s Kindle and Sony’s Reader, which use E Ink technology.
Wow, an actual, honest-to-goodness, venture-backed software IPO.
We’re getting one today.
Silicon Valley-ites have had a tougher time getting rich for much of this decade because their normal routes to huge fortunes–the sale or IPO of their startup tech companies–have been crimped by new regulations and poor market conditions, which have worsened in this recession.
I’ve talked quite a bit in the past about the turning point that the year 2004 represented in the video game business.
EBay this afternoon announced that it plans to spin off Skype via an initial public offering in the first half of 2010. The company said specific timing of the IPO will depend on market conditions. The announcement did not say whether eBay would maintain a stake in the company.
Complicating the Diploma-Gate issue that cropped last week at Concur Technologies, it turns out that a second company executive also misstated his educational background in some corporate filings.
Last week, Concur confirmed that company filings from 1998 through January 2007 incorrectly asserted that CEO S. Steven Singh had a degree from the University of Michigan, where he attended college, but never actually graduated.
Sohu.com, one of China’s largest Internet companies, hopes U.S. investors like its hack-and-slash videogames enough to give it as much as $120 million.
The Beijing-based company filed this week for an initial public offering of American depositary shares for its online game subsidiary, Changyou.com, on the Nasdaq Stock Market. The company started its road show presentations for investors in Hong Kong Wednesday, and will issue the price of the deal in the coming week, said company executives.
I worked for Blockbuster for a brief period of time. I was the President of BBI responsible for new media. It was an excellent career move for me and despite my short time there I learned a lot, got to do a lot and almost became the kingpin of cable!
The numbers are startling; one technology IPO last quarter, only six in 2008. Is innovation dead? Did Google/Microsoft/Cisco consume all the promising start-ups? Did Sarbanes-Oxley render IPOs too hard and costly? Yes, if you believe columnist, conference and collective wisdom. They’re wrong.
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