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It has been at least a decade since going public via an Initial Public Offering (IPO) has been considered a credible exit strategy for startups. But the word is out on Reuters that LinkedIn, Twitter, and maybe even Facebook are looking hard at going public this year, so all of a sudden the IPO option is back in business plans again as an exit strategy for startups.

But before you jump on the bandwagon, you should consider the advice I saw recently from the maven of venture capital, William H. Draper III, in his new book titled “The Startup Game.” He says that you should never consider a public offering unless you are confident that the company will deliver increasing profits and revenue after the offering, so that the public buyer can anticipate a gain.

To read the full, original article click on this link: Startup Professionals Musings: 2011 May be the Year of the IPO for Social Media

Author: Martin Zwilling