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The Real Reason IPOs And Mergers Are Down (whydoeseverythingsuck.com)
24 points by whalliburton on July 22, 2008 | hide | past | favorite | 5 comments


This is a great post. Summary: build companies for the long haul, forget exit, build excellence.

I agree entirely. I love technology but I get turned off by the excessive short-termism that plagues the valley from time to time ...


No reasonable commentary on the lack of IPOs can exclude the increased cost of being a public company. For example, complying with SOX alone costs 1-3 million dollars a year.


On the other side of the coin, no reasonable commentary on the lack of IPOs can exclude the decreased barriers of entry for building a lifestyle business.

If a couple of guys can build a seven or eight figure revenue business with nothing more than sweat equity, savings, a little debt, and maybe an angel, they may not be in such a rush to cash out.


That is an interesting point - implied in that statement is lifestyle businesses are crowding out cashout businesses. That may be true, but it is very debatable and speculative (so a reasonable commentary about the dearth of IPOs wouldn't have to talk about it).


The article complains about 'gimmicks'. People around here believe in producing tangible prototypes for $15,000 in three months, what can you expect but gimmicks?




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