Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave

Post by 80386 » Mon, Apr 16, 2018, 6:40 AM UTC

AndrewGaspar wrote: post #49

xsmasher wrote: post #13

Earlier quoted context omitted.

Re: "all costs are the same as before" If you mean the same as running a Taxi, you're ignoring the higher prices caused by the artificial scarcity imposed by the medallion system, and ignoring the cost / fee for of the medallion itself. Uber could absolutely return some of that to the user in the form of lower prices than traditional taxis; and keep some for itself, of course.

Uber also has some efficiencies - its ability to pair customers and drivers makes robust taxi markets in a lot of places that wouldn't otherwise have them. (I honestly don't even know if my city has a traditional taxi company, but it definitely has Uber and Lyft)

Post by icebraining » Mon, Apr 16, 2018, 7:37 AM UTC

elvirs wrote: post #61

something tells me all stars are aligning for a huge correction. real estate prices inflated beyond imaginable while wages bave been stagnant. almost a decade old tech companies not making any money valued in billions and an administration made up of moron wages war on issues that have no relation to the country. something tells me shit will collapse big time in Trump's last term and everything will be blamed on him…

Post by encoderer » Mon, Apr 16, 2018, 7:41 AM UTC

frisco wrote: post #19

baron816 wrote: post #18

Let’s say the company you work for goes public and your stock is suddenly worth $1,000,000 (as an example). A wise investor, you normally put all of your other savings into broad market index funds. Now, do you sell your company’s stock that was given to you and took you four years to vest into, or do you hold on to it and hope the valuation keeps rising? (This is a rhetorical question btw)

It’s not all or nothing. Selling 25% probably makes sense. Selling 100% probably doesn’t. The right balance depends on what % of your total net worth that $1M represents. I also think it highly depends on your answer to “how excited are you about the company’s roadmap for the next few years?” and “do you feel like you / the company have more to do on the topic?”

Post by nathan_f77 » Mon, Apr 16, 2018, 8:21 AM UTC

matte_black wrote: post #36

mistermann wrote: post #15

Earlier quoted context omitted.

I've thought for quite some time that rather than the broader overall market being allowed to participate in the possibility of crazy gains from technology startups, the rise of the VC financing model has resulted in the lion's share of gains (and losses) going to an elite group of well connected people, and once the easiest money is made, let the market have what's left over in a traditional IPO. As you point out, t…

This is something you can believe only if you think the vast majority of startups are making these returns. The fact is the lions share of risk also goes to VCs. If you gave an average investor the kind of deal flow that big name VCs have access to you’d fry their central nervous system. YC, for all it’s prestige, has only had one startup actually IPO, and only recently. Can an average investor survive this kind of t…

Post by jon_richards » Mon, Apr 16, 2018, 8:41 AM UTC

mathattack wrote: post #81

rifung wrote: post #31

Earlier quoted context omitted.

This exactly. I work at Google and it astonishes me how surprised people are when I tell them I use autosale, the company program where your stocks are sold immediately as they vest. They always ask "Don't you think Google stock is going to go up?" And I always reply that yes I do think it will go up but 1) that's not the right question to ask, you should ask whether it will go up more/less than anything else you cou…

#2 is the dominant point. One of the subtle points on diversification is that it's ok to take less returns if they are uncorrelated to your other investments - you want things that go up when your main investments go down. Even if you're 90% sure that Google will beat the market, you want protection for the 10% case. (And yes - your human capital will take the upside when Google continues to do well)