I was reading an interesting article this morning about the string of disappointing IPOs that have occurred so far in 2019. Companies such as Peloton, Uber & Lyft have all listed publicly this year with the help of superpower VC firms and yet they are all currently priced below their IPO price. Seems odd for companies that are so successful right?
Well of course they’re successful, but do their business models stack up or are they simply looking healthy thanks to hundreds of millions of $$$ in VC funding?
Brings an interesting question of whether VC funding is always the right thing for a company. Obviously it helps achieve certain goals and allows a faster go to market strategy, but without a great business plan in place how many times will these companies need to raise funds to see out the future?