Cashing Out: Exits and Valuations

May 4, 2010 source: VatorNews
In this segment, Randy Hawks is less bullish on the IPO market than earlier reports had suggested. Many investment bankers/VCs had predicted that there would be 50 to 100 VC-backed IPOs this year. Randy says the number will likely be half that. Randy also touches on the milestones companies need to go public.  Financially-driven companies need four to five quarters of profitable growth and $100 million in revenue and 20% growth rate going forward vs a story-driven company, which needs less revenue but rather more market domination. Randy predicts that Twitter will go public in 2011 and that Facebook, Zynga, Yelp and LinkedIn are positioned well to go public. His parting advice to entrepreneurs: “You must have market momentum and satisfied customers.”