Surely now is preferable to during the downturn when you'll get half the value for the same percentage of your company? (Assuming of course that you and I are correct that a downturn is looming).
You’ll get half the value and it remains stable - versus you get twice the value and then it suddenly nosedives and everyone questions your performance as CEO because “you must have made it happen”.
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It's a confluence of all of those factors:
- Dropbox demonstrated a reasonably strong market for IPOs, so it's definitely safer for other companies to get in before the first flop.
- There's probably a lot of pressure to go public, seeing as how many of these companies have private for more than a decade [1]
- There's also reason to believe we may see pressure in the equity markets in the near future, especially as the Fed adjusts interest rates.
[1] https://www.crunchbase.com/organization/bit9/funding_rounds/... Series A was in 2005
It seems like a terrible time to put your org's shares into the public market, so late in the business cycle with the eventual downturn looming.
EDIT: Agree that if you must go public, go before the music stops. I'm wrong here.
Now's the perfect time. We're near the peak, so valuations are very inflated.
Surely now is preferable to during the downturn when you'll get half the value for the same percentage of your company? (Assuming of course that you and I are correct that a downturn is looming).
You’ll get half the value and it remains stable - versus you get twice the value and then it suddenly nosedives and everyone questions your performance as CEO because “you must have made it happen”.
Is that possible?