SEATTLE — Investors in technology start-ups have been trying to end the drought in initial public offerings of tech companies. But for entrepreneurs, has taking a company public lost its allure?
That question is growing louder among those who start, invest in and advise Silicon Valley start-ups. “I.P.O. has become a bad word in the Valley,” said Richard Barton, a founder and the chief executive of Zillow.com, a real estate site, and a venture partner at Benchmark Capital.
When start-ups grow up, the founders pay back their investors by selling the business to a bigger company or selling shares to the public. Public offerings have long been the more desirable option. They earn the founders and investors more money and the promise of continuing returns, and enable them to keep expanding the company.
To read the full, original article click on this link: For Many Tech Start-Ups, Going Public Is No Longer the Goal - NYTimes.com
Author: CLAIRE CAIN MILLER