ipos in hr space should i stay private

2 Comments:

Anonymous Anonymous said...

Wait, you're saying that it's wrong for VC's to get a return on

their investment? How is that different from any other investor

in a stock or bond? When you buy stock in company, are you evil

for wanting a "big pay day."? Maybe the company wouldn't even

exist if it wasn't for the early investors. They have every

right to expect that their investment will be worth something

eventually. If the company stays private that won't happen. And

don't mention "dividends" because VC's don't take huge risks to

get piddly returns from dividends. I'm tired of everyone

bashing business for being greedy, except when THEY make lots

of money. Then its OK. What a crock.

8:20 AM

Blogger HR Marketer said...

In response to the anonymous poster, allow us to clarify our

intended message in this blog posting.

This individual obviously took offense to our statement "

Unfortunately, IPOs are too often motivated by the wrong

reasons including the desire of Wall Street, VCs, and other

financial backers to receive a "big pay day...."

.

We are capitalists and we run a for-profit company. We do not

think, nor did we say, that it is wrong for anyone, including

Wall Street, to get a return on their investment. We simply

stated that we believe companies should go public in order to

"...(1) raise capital for investments and expansion to benefit

customers and investors and (2) reward and create equity stakes

for employees and owners....(in this order).

Our experience shows that when the sole or primary motivator

for an IPO is compensation, problems usually (but not always)

arise.

We invite and encourage debate on this posting, and all

postings for this blog. It makes it all worthwhile to know our

postings can inspire such passion. Thanks for reading!!

9:01 AM

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