Re:How Goldman Sachs Became a Tech-Investing Powerhouse
by roymurdock on Tuesday July 28, 2015 @10:41AM
(#9961801)
Ah I see, I thought you were urging Twitter on because you hold a portion of your portfolio in TWTR. I'm baffled as to how the market valued Twitter at $45 per share up from an IPO price of $26, implying $3bn in yearly revenue. I'd also love to figure out who "the market" is behind Twitter - institutional vs. casual.
On your last point - a private liquidity event, AKA raising an investment round and offering employees the option to sell back equity? Or, could the company step out of the way completely and let banks buy equity directly from employees? (I've never worked for a company in this situation so I have no idea what the laws would allow)
Re:How Goldman Sachs Became a Tech-Investing Powerhouse
by ececconi on Tuesday July 28, 2015 @11:08AM
(#9962044)
According to google finance 60% of twitter is owned by institutional investors. Compare that to 67% for Facebook.
https://www.google.com/finance?q=NYSE%3ATWTR&ei=z5q3VdHiDon3...
Re:How Goldman Sachs Became a Tech-Investing Powerhouse
by nerfhammer on Tuesday July 28, 2015 @02:34PM
(#9963594)
sama has suggested letting options stay valid for 10 years http://blog.samaltman.com/employee-equity
It's like the company had a huge push to go public and then everyone was so tired that they just stopped working once they got public.
I understand that it's a company full of great people and I don't want to shit on someone's hard work but when they went public the deal they struck was
- the markets gave them a huge valuation and in return the market expected big things from them.
So what great new things has twitter done since going public to earn their huge valuation? I think even the most ardent twitter supporters would have to agree that they have disappointed as a company since going public.
As an aside, I don't think this post IPO lull is limited to twitter, with longer cycles before going public I expect alot of companies to show this type of burnout after going public.
Good companies will get this and give their employee's a way of getting liquidity from their options before IPO. I think this will become a new recruiting tool for the best companies.
Something along the lines of if we don't go public in 7 years from the companies founding then we'll provide a liquidity event for employee's who have been here longer than 4 years.
GS will play a roll in this I'm imagining.