Silicon Valley investors call a summit to rethink the IPO business

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Silicon valley investors call summit to disrupt IPO business

Powerful figures are gathering 2,500 miles from Wall Street to redesign one of its oldest and most lucrative businesses — but few from the industry will have a seat at the table.

“I’m not anti-banker, I’m pro-algorithm,” Bill Gurley, a general partner at venture capital titan Benchmark, said in a phone interview. Gurley, who is one of the meeting’s organizers, said investment bankers, for the most part, are not invited. To be sure, investors expect IPOs to feature first-day “pops” in price that reward the risk they take supporting a market debut. Yet while companies going public sometimes appreciate the positive press and the demand that such rallies create for future offerings, some entrepreneurs have lamented the money left on the table that could have gone into operations instead of speculators’ pockets.

 

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Alternate headline: VC's look for new ways to skim the cream.

We aren’t getting rich enough fast enough let’s rethink this!

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