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by nostrademons
3306 days ago
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YouTube was bought really quickly, well before they had a revenue model. Post dot-com boom, you generally need at least revenue to have a decent chance of success on the public markets, even if you don't have profits. A better analogy might be Groupon (IPO'd 2011) or GrubHub (IPO'd 2014). Both of those were in similarly indefensible industries - GrubHub even in food delivery - and they both IPO'd basically because having capital gave them a competitive advantage over competitors that didn't, because it let them not-die and continue attracting customers with subsidized prices. Neither was kind to public market investors, but it was absolutely the right choice for founders & early investors who got out (or in some cases, were forced out). |
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