Private equity ruins tech companies
blog.zmh.org
Private equity ruins tech companies
1–10 of 49 posts
Re: Private equity ruins tech companies
#2The title could be generalized to "Private equity firms ruins companies"
Re: Private equity ruins tech companies
#3I've seen firsthand how PE ruins startups. I joined a seed co and our founder went with a PE firm rather than a VC for our next round. The VCs were upfront about job cuts but the PE investors did not say anything until they took over.
Needless to say, the founder got a good paycheck but we were left holding the bag.
It was a bloodbath and they completely ruined the culture, product, morale, and any semblance of growth. It was personally the most stressful period of my working life...
From then on, the moment that I see private equity mentioned anywhere, I know its time to run.
Re: Private equity ruins tech companies
#4The title could be generalized to "Private equity firms ruins companies"
Tech seems to accelerate the decline though, without the inertia of physical stores or plants to slow things down.
Re: Private equity ruins tech companies
#5This is not really news. The question is, what there is to do? I think that it is logical to sell your company to highest bidder when you want to exit, and often the highest bidder ends up being a PE firm.
Re: Private equity ruins tech companies
#6This is an aspect of the Wordpress vs WPEngine I hadn’t considered. Does anyone who’s more familiar with WPEngine than me know if the VC ownership has affected its behavior?
Re: Private equity ruins tech companies
#7Is there a company out there that has survived a gutting by PE?
Re: Private equity ruins tech companies
#8Even if that's true, that's even less reason to attack them and make yourself look terrible. Just wait and they'll destroy themselves.
Re: Private equity ruins tech companies
#9This is not really news. The question is, what there is to do? I think that it is logical to sell your company to highest bidder when you want to exit, and often the highest bidder ends up being a PE firm.
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Re: Private equity ruins tech companies
#10Is there a company out there that has survived a gutting by PE?
Last I heard Barnes and Noble was doing pretty good:
https://www.theverge.com/23642104/barnes-and-noble-amazon-bo...