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How Important Is Profitability For Tech IPOs?


By Webrank at September 15, 2009 0 Comments    Share

Before the financial crisis hit, public-market investors frequently took chances on unprofitable technology start-ups. Companies such as Clearwire and Vonage whose IPO filings warned of mounting losses for the forseeable future were escorted by venture capitalists to the public markets as institutional investors grew comfortable with taking big risks.

Bloomberg News
Officials and guestBefore the financial crisis hit, public-market investors frequently took chances on unprofitable technology start-ups. Companies such as Clearwire and Vonage whose IPO filings warned of mounting losses for the forseeable future were escorted by venture capitalists to the public markets as institutional investors grew comfortable with taking big risks.

Bloomberg News
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