231–240 of 276 posts
Isn't that the strategy these days? Extract as much value from a company and only then go public?
Yep, IPOs are the new down rounds. The founders/early investors sell shares on the private secondary market pre-IPO, leaving the public and the employees holding the bag after the IPO.
Angie's List: from $28 in Jul 2013 to $9[0] Box: from $24 in Jan 2015 to $10[1] GoPro: from $87 in Oct 2014 to $11[2] Groupon: from $26 in Nov 2011 to $2.60[3] GrubHub: from $46 in Apr 2015 to $21[4] Twitter: from $70 in Jan 2014 to $18[5] Yelp: from $97 in Mar 2014 to $21[6] Zillow: from $121 in Feb 2015 to $22[7] Zynga: from $15 in Mar 2012 to $2[8] 0: http://www.google.com/finance?q=ANGI 1: http://www.google.com/f…
Facebook: $38.23 to $94.97 (May '12 - present) [0] Wayfair: $32.18 to $37.81 (Oct '14 - present)[1] TripAdvisor: $27.91 to $70.63 (Dec '11 - Present)[2] Hubspot: $29.05 to $50.04 (Oct '14 - Present) [3] Tesla: $10.40 to $204.99 (Jul '10 - Present ) [4] ZenDesk: $15.25 to $23.10 (May '14 - Present) [5] LinkedIn: $90.09 to $196.10 (May '11 - Present) [6] 0: https://www.google.com/finance?q=facebook&ei=OGyZVsiyEYqNmAG..…
I'm not surprised at all. Etsy used to be user based and hand made. Now it's just another market place. They still act like they try to enforce "non-mass-produced" but there are countless examples of the opposite being true. Places where people have directly reported instances of this and the problem is still present. I think the problem is that they stopped caring about their user base and, therefore, became less ub…
An alternative hypothesis: maybe they reached the limits of the scalable, addressable, growth market for small-batch, handmade goods?
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Yep, IPOs are the new down rounds. The founders/early investors sell shares on the private secondary market pre-IPO, leaving the public and the employees holding the bag after the IPO.
Are there other instances of this happening in the secondary markets?
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I understand the product-fit, but what incremental value does Etsy bring to either of those companies?
Neither of them have marketplaces for custom made goods (for the most part at least compared to etsy) and both are in competition with each other to expand their marketplaces to as far as they can go. Seems like it would be a good fit to me. I'm not sure how it ultimately gets integrated it (maybe it doesn't?).
http://www.nytimes.com/2015/10/08/business/amazon-challenges...
But, don't let that stop you...
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Their lock-in is their network effects. Airbnb has a huge selection of locations in many major cities around the world. Uber has an incredible number of drivers and riders on the system globally at all times of the day. Competitors will have a very hard time replicating that.
Your comment would be true if it weren't possible to list on multiple sites/apps at the same time. Many studies have already shown that the majority of drivers in large markets (SF/NY/etc) keep multiple apps open, and accept fares from whichever one offers the (probable) best return. While Uber appears to be fighting this by modifying some policies, there's ultimately very little they can do to stop this.
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Neither of them have marketplaces for custom made goods (for the most part at least compared to etsy) and both are in competition with each other to expand their marketplaces to as far as they can go. Seems like it would be a good fit to me. I'm not sure how it ultimately gets integrated it (maybe it doesn't?).
What about Amazon? They launched a competing marketplace in October: http://www.nytimes.com/2015/10/08/business/amazon-challenges... But, don't let that stop you...
Just my opinion though. Who knows for real.
As they always say, this time is different. My opinion is that the tech sector has greatly expanded since 2000, not just in amount of investment available, but also types of business tech companies are actually in. So maybe there is a web/ad bubble and it might pop, but how much that affects individual company is more nuanced. Unsophisticated investors might still lump Google/Twitter/Tesla/AMD into the same "tech sec…
i have been thinking about this a lot. Peter Theil talks a lot about paypal when they were burning cash, but they had finally started to get the business fundamentals together. He calculated, i am approximating but it was close to, 80% of the companies worth came after 20 years. My thinking is that public markets are shitty, so almost all of the value capture takes place way before a company is worth it, it stays pri…
In a public market, capitalism [generally] prices things appropriately so its hard to make a killing on it. But, you can still make money.
That is the basic function of a fair market and its important it continues to exist.
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Many multiples? Try two to three, currently. "For instance, there seems to be a consensus that the most lucrative cab market in the world is in Japan, where yearly revenues are estimated to be about $20 billion to $25 billion just in Tokyo, followed by the United Kingdom with revenues of $14 billion, the bulk from London, and the U.S. with $11 billion overall and about $3 billion in New York. Assuming taxi revenues i…
Uber won't capture merely the value of the US cab market, they're going to vastly expand it. People are already using Uber for things that they would never otherwise have tried to hail a cab for due to either cost or inconvenience or annoyance. It has significantly opened up the potential scale of the US taxi market, and will continue to do so. Uber's use is also blatantly going to broaden beyond the classic taxi mar…