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Everybody has known that for awhile, even without perusing a prospectus. To be clear Airbnb posted a GAAP profit in Q3 2020 of over $200M which is impressive given travel remains materially depressed due to COVID. But even with this profitable Q3, on a trailing twelve months (TTM) basis Airbnb has a GAAP net loss of >$1 billion.
Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Yet they still see warning lights in many geographies around the world, due to political uncertainties. The M&A alternative looks simple by comparison.
Smart entrepreneurs are just now starting to look at this option again, due to its unpredictability and the challenges of running a public company. Too many startups have experienced early financial losses and technical glitches, like Uber and the Zynga IPO a while back, which antagonized individual investors and startup executives as well.
The move came as a shock to many in the tech business community, in which we’ve become accustomed to real-time disclosure by company executives through social media. To understand the SEC’s point of view , it’s necessary to review the principles underlying securities law in the United States.
Smart entrepreneurs now avoid this option like the plague, due to its unpredictability and the challenges of running a public company. In addition, huge amounts of executive time are required, as well as hits to key operational, accounting, and communication processes. The M&A alternative looks simple by comparison.
I asked Michael Hoffman, Partner and General Counsel of Feenix, how he compared his firm with tech-enabled Merchant Cash Advance companies, e.g., Clearbanc , C2FO , Shopify Capital , etc. At maturity, which is typically 3 to 5 years, any unpaid amount of the cap is due. Investor prospectus . He said, . “[W]e
I have a few contractors to do the technical side of my work and a customer support person, but that’s it. As I said, I have a very small operation and I’m able to make much more than the average person. I didn’t have a contractor doing technical things for me. DOING DUEDILIGENCE. I’m the content creator.
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