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Re: The Broken IPO Process and More WeWorkâ�¦ 

By: Zimbler0 in POPE 5 | Recommend this post (1)
Mon, 23 Sep 19 3:03 AM | 24 view(s)
Boardmark this board | Pope 5 		Msg. 40536 of 62138
(This msg. is a reply to 40479 by capt_nemo)
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>>
I’m not sure I trust large Venture Capitalists any more than the banks in 2019, but change is coming.
>>

I seem to recall reading somewhere that the folks who 'can' buy IPO's
early are the 'chosen ones' . . . Who have opportunities to buy the
IPO at the 'below market' prices. And that all too often 'normal'
folks trying to buy into an IPO wind up paying a lot more - running
the price up so the 'chosen ones' can then sell at an obscene profit.

'Venture capitalists' smell like the ones who can profit handsomely
from these games.

Me? I'm not touching them.
Let the wheeler dealers play their silly games with each other.
Leave me out of it.
Zim.




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The above is a reply to the following message:
The Broken IPO Process and More WeWork…
By: capt_nemo in POPE 5
Sun, 22 Sep 19 8:01 AM 		Msg. 40479 of 62138

Venture Capitalist Bill Gurley took to Twitter the other day for an IPO takedown. You can read the thread here.

The gist…Bankers (Goldman, Morgan and JP Morgan) are underpricing IPO’s. Bill says:

The banks with the strongest brands actually provide the worst corporate execution. The top two firms (by IPO count) have underpriced on average by around 30% for the entire past 10 years over 100 IPOs each. The top 3 banks accounted for 81.3% of all underpricing.

Here is the chart of the money companies have left on the table for the joy of going public with the help of the banks:

CHART IS TOO BIG TO POST DG will be yelling at me LOL..

There is ‘slippage’ and there is ‘slipppppppppppppage’.

I wrote about this back in 2014 as I saw this happen first hand with TubeMogul.

Bill is calling for change.

I’m not sure I trust large Venture Capitalists any more than the banks in 2019, but change is coming.

Spotify and Slack did direct listings and Spotify’s CEO is saying that it is moronic that the old system of IPO’s has not evolved. You can read his thoughts here.

PS – People are excited about journalists peeling back the onion layers of WeWork to which I say this onion is peeling itself.

This video of Ashton Kutcher and Wework founder back in January is rather cringeworthy. In hindsight this video was a sign of the top as you listen to all the philosophical mumbo jumbo and back slapping going on. Every MBA class should study this one.

It is a good reminder to stay humble and be respectful of the system and the freedoms we have.

http://howardlindzon.com/blog/

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