The chart below shows that software and services companies take about the same amount of time to get to IPO as just about all other categories of companies that venture capitalists invest in. I found it on CNN Money.
This is a somewhat surprising finding given that internet companies often create value really fast, and thinking it through I came to the conclusion I used as the title to this post – that what internet companies are good at is creating some value really quickly, but to create the demonstrable value that underpins an IPO takes longer. Taking two recent high profile internet IPOs as examples – LinkedIn’s IPO came 8.5 years after it was founded, and Pandora’s 11.5 years. Facebook was founded in 2004 and will be eight years old at IPO if it goes out as expected next year (although they could have listed earlier).
To read the full, original article click on this link: Tech companies create small value fast, but take the same time as biotech to get to IPO « « The Equity KickerThe Equity Kicker
Author: Nic Brisbourne
