The investor behind companies like eBay and Allbirds says IPOs give startups the freedom to escape domineering VCs

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 51%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Dan Levitan, cofounder of Maveron, thinks even companies with dual class structures are governed better when they're public.

, said he sees the tide changing from five years ago when entrepreneurs were fully committed to staying private.as a way to escape domineering investors or conflicts on the board level, he said Monday at the Milken Institute Global Conference during a panel looking at the current wave of tech IPOs. A public governance model is the best way to do that, in his view.

"We're five years into this experiment of large firms like SoftBank and others taking outsized platforms and putting in hundreds of millions if not billions of dollars," Levitan said."What I've talked to some founders about is, do you want to be captive to one investor?"as a classic example of a"highly dysfunctional" private governance structure.

"The IPO, bizarrely, is an attractive thing to the management team because they're being pulled in different ways," Levitan said.Harvard researchers say that Lyft investors will likely come to regret giving the cofounders so much control with so little stock Axios editor Dan Primack, who moderated the panel, then asked whether Levitan thinks IPOs improve governance in the case of dual class public listings, which give founders and early board members high-vote stock and disproportionate decision-making powers compared to public investors.Kara Nortman, partner at UpFront Ventures, had her own take on mega late-stage investors to share during the panel:"I think that is the value of a longterm early stage investor.

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:

 /  🏆 729. in NG
 

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

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

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

Airbnb CEO says company will be ready for IPO later this year: CNBCAirbnb will be ready for an initial public offering later this year, the home-re... Risky investment lol Liabilities and enemies around the world with not much room left to grow. I'd love to get in at the beginning so I can dump it all after enough suckers fell for it Go public, and get ready for all the lawsuits from users who were spied upon, raped, murdered, because you cannot ever provide a safe rental, because you have no oversight, inspection, or care for your users. You love the $$$$$$$$$$
Source: Reuters - 🏆 2. / 97 Read more »

The We Company, formerly known as WeWork, files confidentially for IPOThe We Company, formerly known as WeWork, filed confidentially for an IPO, the company said in a press release on Monday. All the cool companies are doin it Well now you’re just blowing up their spot
Source: CNBC - 🏆 12. / 72 Read more »

Coworking company WeWork files for IPO - Reuters TVWeWork said on Monday it had filed for an initial public offering with U.S. regulators, the latest in a swarm of U.S. startups planning a stock market debut this year.
Source: Reuters - 🏆 2. / 97 Read more »

Vegan burger company Beyond Meat's IPO sizzles with $25 share priceVegan burger maker Beyond Meat Inc, which counts Microsoft founder Bill Gates an... & the after celebrations were at Burger King for the real thing ;) That’s a meaty valuation. If it's cheaper and tastes good, I'll consider it. If it's more expensive and/or tastes bad, then I won't.
Source: Reuters - 🏆 2. / 97 Read more »