Current Location: Home » News » World technology » Text

Tech start-ups delay listing ‘way too long’, says Google venture capital chief

Zoom  Zoome in   Views:190
Core Tip:Tech start-ups are waiting “way too long to go public”, the head of Google’s venture capital arm has warned, highlighting a widening rift in Silicon Valley over the fate of the latest generation of fast-growing start-ups.
u=2623134424,4192679674&fm=11&gp=0
Tech start-ups are waiting “way too long to go public”, the head of Google’s venture capital arm has warned, highlighting a widening rift in Silicon Valley over the fate of the latest generation of fast-growing start-ups.  

Many of the companies leading the technology boom, including Uber and Airbnb, have sought to stay private as long as possible, raising ever-larger amounts of money from successive rounds of private investment. But the mood is changing and investors are growing skittish. 

Bill Maris, head of Google Ventures, one of California’s most active VC firms, warned some start-ups might rue deciding to exploit the private markets to push for high headline valuations, rather than selling shares to the public.

“They’re setting the bar so inordinately high they’re making life difficult for themselves,” Mr Maris said in an interview with the Financial Times. “There’s going to be some fallout: some of them will lose a lot of money.”

Next year, many will be unable to raise more cash in the private markets or will be forced to accept lower valuations, he said. Google Ventures, which is changing its name to GV, has backed more than 300 companies since its creation six years ago. 

Investors who had stampeded into the private markets for a chance to back companies such as Uber, Airbnb and Snapchat have become far more risk-averse in recent weeks, especially after questions were raised about the validity of claims made by blood-testing start-up Theranos. 

“There’s less money, more fear, more caution,” Mr Maris said. 

The prospect of interest rate rises in the US will make the private markets even more hostile for start-ups, he said. “Suddenly, being a public company is going to look a whole lot more exciting”. 

The warnings signal a reversal of what has become received wisdom during the tech boom, as venture capitalists courted entrepreneurs with promises of leaving them free to stay private rather than pushing them to cash out. 
 

If you believe that this information is a violation of your legitimate rights and interests, please send the relevant qualification certificate and your rights to info@worldinout.com, Worldinout staff will reply as soon as possible! The purpose of this network is to convey more information, does not mean that the network is in favor of its views and its authenticity. Such as reproduced this site information, please specify the source.

 
[ NewsSearch ]  [ Add to Favorites ]  [ Tell a friend ]  [ Print ]  [ Send report ]  [ Close the window ]

 

 
Recommended Graphic
Recommend News
Click Ranking
 
HomeSite | About us | Contact Us | Agreement | Copyright | Sitemap | Spread | Guestbook | RSS Feed