The unicorns are coming, and not a minute too soon for many investors.
As Bloomberg News reported recently, a flood of private companies are planning initial public offerings for next year, including behemoths such as Uber, Lyft and Slack Technologies. Airbnb may also add its name to the list.
Investors have been eager to get in, enviously watching humble startups morph into billion-dollar ventures. If only Uber and its cohorts had gone public earlier, investors tell themselves, they, too, could have profited from their rise.
Except it’s an illusion. For every Uber, there are many more startups that investors have never heard about. And even if they had, it would have been nearly impossible to pick the winners in advance, no matter how inevitable their success may seem now. The truth is, startups are doing investors a big favor by putting off IPOs until they’re more grown up.Continue reading “Good Things Come to Those Who Wait for Unicorn IPOs”