Chapter
The Benefits of Taking a Company Public
48:37 - 56:39 (08:02)
The process of taking a company public offers the person responsible for doing so a percentage of the company's stock, usually around 5% to 10%, as a reward. One potential advantage of this process is being able to identify new investment opportunities as demonstrated by the idea of buying all of Wish, a company with $700 million in cash and a market cap of $286 million.
Clips
Many startups need to fire people, cut marketing expenses, and accept declining revenue to become profitable.
48:37 - 51:12 (02:34)
Summary
Many startups need to fire people, cut marketing expenses, and accept declining revenue to become profitable. However, there is still an opportunity for companies to raise venture money or private equity money to achieve scalability and growth.
ChapterThe Benefits of Taking a Company Public
EpisodeSVB Collapse Explained, D2C Brands That May Fail, And Suli's Next Venture
PodcastMy First Million
A proposal to buy all or a majority of Wish was made based on its market cap and cash flow being disproportionately valued, but the potential benefits are uncertain.
51:12 - 53:56 (02:44)
Summary
A proposal to buy all or a majority of Wish was made based on its market cap and cash flow being disproportionately valued, but the potential benefits are uncertain.
ChapterThe Benefits of Taking a Company Public
EpisodeSVB Collapse Explained, D2C Brands That May Fail, And Suli's Next Venture
PodcastMy First Million
SPACs allow sponsors to take a percentage of the company's stock without taking any real risk, while investors can either keep their money in the deal or sell it to get their initial investment back.
53:56 - 56:39 (02:43)
Summary
SPACs allow sponsors to take a percentage of the company's stock without taking any real risk, while investors can either keep their money in the deal or sell it to get their initial investment back. This differs from traditional company public offerings where thinly traded stocks can be hard to acquire controlling shares.