Continuations: The Private IPO
Excellent post from Albert about what’s happening in the marketplace. The IPO may be going by the wayside. I’ve been discussing this a bunch recently with friends, on why the regulations, and the overall scalping the participants get when using an exchange to go public. It may well not be worth it anymore. When bankers and regulators detract from the viability of the capital you raise so much, the best deals will go elsewhere to raise what they need and operate out of reach of hindrances that come attached with being public. You’re starting to see that right meow.
Yes, I realize that’s a contradiction, but it seems to capture the essence of deals such as Goldman’s investment in Facebook at a $50B valuation and Groupon’s half-complete $950 million fundraising effort. These deals are designed to provide significant liquidity for insiders (especially early…
