Inside Bill Gurley's mission to upend the tech IPO market in favor of direct listings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 74 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Bill Gurley has spent the past month evangelizing direct listings over IPOs so that tech companies stop handing out free money to Wall Street.

, two business software companies that held blockbuster IPOs this year, and you hear rave reviews about how great the offerings have been for them.

Zoom, which makes a popular videoconferencing service, more than quadrupled its cash and marketable securities position to over $730 million after its IPO in April. So did cloud security vendor CrowdStrike, to more than $825 million. Yes, both companies left potentially hundreds of millions of dollars on the table after theirmore than 70%, but they're still in much stronger financial positions than ever and they've received a huge bump in exposure that helped bring in new customers.

Zoom CFO Kelly Steckelberg said in an email to CNBC that Zoom "got the most added attention in the financial community," and even picked up business from several of its IPO banks who she said are "trialing or have standardized on Zoom now."last month, Zoom said its number of customers with at least 10 employees was up to 66,300, rising 78% from a year earlier and 31% from just before the IPO. That's a lot of recurring revenue.

As for direct listings, Steckelberg said the process "hasn't been proven yet," while Kurtz said, "we thought this model worked for us and we were happy with the outcome.

"I have zero doubt that someone that just did the biggest transaction and most important financial event of their life is going to answer that way," Gurley said in a text message response. He added, "I don't think being short term oriented is the right way to think about financial markets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Gurley should focus on having these companies actually make money

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Early WeWork investor Bill Rudin on the company's business modelBill Rudin, Rudin Management CEO, discusses his early investment into WeWork and his view of the company's business model. Yes. Maybe not a model where you take ten year leases, invest a ton in cap-ex, then offer short term rentals... Bill Rudin and his PR guy Howard Rubenstein (HR Jeffrey Epstein!) ask them Mike Bloomberg Amanda Bird and Scott stringer 49 city council members Christine Quinn Brad Hoylman why we don't have a trauma L1 hospital w/ Rape Crisis ctr West Village we have Rudin luxury condos
Source: CNBC - 🏆 12. / 72 Read more »

House passes bill aimed at giving Americans back their right to sue companiesOver 80% of the biggest companies in America have put legal clauses into the fine print of their customer agreements that bar you from suing them in federal court. But the House just passed a bill aimed at stopping this practice. MakeIt Eight in 10 ? MakeIt This should help the economy! MakeIt a a Copywriter needs coffee ☕️
Source: CNBC - 🏆 12. / 72 Read more »

Fear Overtakes Greed in IPO Market After WeWork DebacleShares of newly public companies, earlier this year one of the hottest investments on Wall Street, are in a slump after investors soured on money-losing startups from Uber Technologies to WeWork. Fear over Greed? Yeah ... um ... no. Common sense prevailed over a shell game of a corporate structure at WeWork. No, it seems sanity may have returned to the market. Every business dreamed up by millennials should not automatically IPO. Remember these things called fundamentals? savelraqipeople
Source: WSJ - 🏆 98. / 63 Read more »