Friday, June 10, 2011

Tech IPO filings continue

The tech companies that started a few to several years ago continue to add themselves to the IPO queue. This trend will continue as companies, such as LinkedIn, enjoy such successful IPOs. What's in the queue now? (meaning, who has filed with the SEC for an IPO?):

Pandora - the online radio station. Good for them. They've been around for a while and struggled several years ago. They just increased their subscription price by ~50%. (The subscription price is the price at which they will offer shares to go public.)

CafePress - the promotional gifts, t-shirts, and other fashion site that enables online entrepreneurs to setup stores with products at minimal upfront costs. Cafepress was founded in 1999, at the height of the tech boom. It obviously survived the tech meltdown a couple of years later and is now flourishing.

 

Rumored:

Yelp - the online retail outlet (restaurants, hair salons, etc.) community ratings provider.

Facebook - Does this one need a description? Facebook made public statements in January of their intent to file for an IPO in the first half of 2012.

Zynga - a "social network game developer". This company was apparently pursuing the the investment bank, Goldman Sachs, to lead its IPO. Zynga was founded in 2007.

 

I'll keep tabs and update you on more rumored and actual filings of tech IPOs. Why is this important to you? As I've stated before, when venture capitalists can cash out relatively quickly and easily at higher multiples from their investments, they are more willing to invest. So they become more receptive targets for your investment pitches. The effect continues to trickle down over time to angel investors.

 



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