Why do IPOs always royally fuck a company? I mean in terms of

>>1601837
Not always. They had to answer to share holders anyways just private equity shareholders. Atleast with the ipo they can generate capital to expand. Sure they have to give back but it's bonus motivation. Also if the share tanks on ipo it means it was overvalued. Just s&d at work son

>>1601837
pretty much.

you take the business away from the people that started it and grew it and then hand it over to a bunch of overpaid bozos that have never started or grown a business of that size in their lives.

then you change the goal from growth for longevity to profit at any cost. The IPO is often the beginning of the end.

>>1601843
The problem is that in the old days (pre-2008) you went public in order to raise capital. That meant that retail investors got to lose money on dumb shit like pets.com and flooz and beanz, but it also meant they got a shot at some bookstore called Amazon and some search thingy called Google.

Today, all that capital needed for growth is supplied by PE - meaning that the IPO isn't a raise of much-needed capital, it's an exit round in which the PE shareholders who invested in the private company get their money *OUT* of the company during the IPO, and the new retail bagholders are guaranteed to get fucked. (The three biggest recent examples being FIT, GPRO and TWTR, whose 3-year charts should prove instructive)

Lending Club is kind of interesting

>>1601927
Seems true

>>1601843
>They had to answer to share holders anyways just private equity shareholders
public share holders are dumber than rocks.

at least private shareholders aren't full retard every now and then.

>>1601927
I've lost heaps on GoPro after the past month
I thought they would have a great Christmas

IPOs are more and more being used as an exit strategy for people with large positions in the company. Many early investors often dump their shares after lock up periods expire. The reason quality seems to decline after an IPO is often the company was already on the decline.

>>1601837
> Board of directors
> Shareholders
> SEC rules
> They start seeing the stock as their company, not the product

Really it's a mix, but the last one. They start seeing PR and press more as stock stunts and don't let their products be the market sway they want. Happens every day, I see it, I work with companies and their PR and this is all they really care about at a point; their stock appearance.

>>1602217
Seriously?
How exactly are you evaluating their electronics that would leave you to believe that..

Expanding production is difficult. Supply chain and logistics, sourcing components, qc, HR etc is all easy enough to talk about on paper but it's difficult to get rolling smoothly.