Plenty of companies go public before becoming profitable, it's a way to raise capital. Tesla Motors comes to mind for a recent example. Same for Clear.

Exactly. The entire purpose of opening your company up to the public is so that you can raise more money than you would otherwise get privately. Yes, the shares would probably be discounted for lack of profitability, but perhaps the timing is right for them. I don't know.

Tesla was nowhere near profitability when they went public. Pandora just has to wait a few more quarters before getting access to a natural flow of cash. That's what I found strange.

Their VCs from 2000, 04 and 05 will all be hungry for an exit.