IPO Phobia
Posted on October 18, 2006
Filed Under Commercial Trends |
IPO DROUGHT. In the third quarter only eight venture-backed companies managed to go public, according to data just released by the National Venture Capital Assn. Only 37 startups have managed to go public all year in the U.S.—the fifth bad year in the last six….
This week old article is one of the most interesting things I’ve read in a while.
Broadbus makes technology for video-on-demand for the see-everything-anywhere future.
Its management backed out of an IPO fearing how institutional investors would react to this relatively new company competing against bigger comnpanies but one of its VC backers says selling to Motorola means many of its innovations will be lost as the overall Motorola innovation stream has to be kept manageable, and because key staff will leave.
And as Business Week also says that addds up to a tough exit for venture capital which in trun may stifle innovation across the board.
If I might make a suggestion - it’s really about content now, building tomorrow’s content majors without getting warped by GoogleTube.
technorati tags:IPO, tech, start-ups
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