Assertion: venture capitalist's company | /r/CapableOf | go public
Facets:
value: over the past five years
type: TEMPORAL
value: in the past
type: TEMPORAL
value: with an ipo
type: OTHER
value: in 1955
type: TEMPORAL
value: often
type: TEMPORAL
value: at this point
type: TEMPORAL
value: without making a penny
type: MANNER
Source sentences:
text: This is normally how long it takes for a young business to mature to the point where its equity shares have value and the company goes public or is bought out.
text: Companies are now going public with valuations in the hundreds of millions of dollars without ever making a penny.
text: Then, company executives do the work, you “monitor performance,” and you cash in when the company gets acquired or goes public.
text: The $200,000 that Doriot invested turned into $1.8 million when the company went public in 1955.
text: And a successful company will often either get bought out or go public at this point.
text: In some cases, a venture capitalist will hold on to his shares if he feels the investment will yield consistently high returns, but in most cases, the investor will give up ownership at the time the company goes public or gets sold.
text: When a company goes public, it is often worth hundreds of millions of dollars.
text: So the VC fund is playing the law of averages, hoping that the big wins (the companies that make it and go public) overshadow the failures and provide a great return on the $100 million originally collected by the fund.
text: If a company a VC firm has invested in is successfully acquired or goes public, the firm makes a profit and distributes returns to the limited partners that invested in its fund.
text: Some private equity-backed companies may also go public.
text: In the past, private companies often went public when their need for capital exceeded what private investors could provide.
text: the company they invested in goes public or is sold for a large amount.
text: , they must wait for companies to mature and either sell or go public.
text: The other way is for a company to go public.
text: Ultimately, the company will be either sold to a larger company (at a higher price) or begins to sell shares through the public stock market (going public with an IPO).
text: A big win for a venture capitalist is when a company goes public or when it sells for a large sum.
text: Other venture capital firms deal only with second-stage financing for expansion purposes or bridge financing where they supply capital for growth until the company goes public.
text: When a company goes public, it is called an Initial Public Offering.
text: The warrants are usually exercised when the company is acquired or goes public, yielding an 'equity kicker' return to the lender.
text: When a new company goes public, it is acquiring capital investment on a large scale from many investors.
text: Typically, a venture funded company will have common stock, founder’s stock and several classes of preferred stock, including some convertible preferred stock which allows an investor to convert stock to common if/when the company goes public.
text: Bain's eight years' of involvement in Ampad is estimated to have generated over $100 million in profits ($60 million in dividends, $45–50 million from the proceeds from stock issued after the company went public, and $1.5-2 million in annual management fees).
text: The few companies that endure and grow to scale may go public or may sell the operation to a larger company.
text: When a company goes public, it sells its stocks and bonds to large-scale and institutional investors such as hedge funds and mutual funds.
text: In the United States, wealth has really been built by owning private companies prior to them going public and then you get the multiples paid for public companies over time.
text: Companies at this level, which are no longer considered startups but have yet to go public, are typically referred to as "mezzanine level" companies.
text: There can be several phases of investment (see seed money), through to the stage when the company is able to go public.
text: Venture capitalists make their money back when a company is sold or goes public.
text: For instance, early investors in Facebook are going to reap a massive return when the company eventually goes public (this is expected in 2012).
text: In fact, Broadview Associates used to show a chart that something like 80% of all venture backed companies that went public had stocks that traded below the offering price within a year of the IPO.
text: What's more, of the nearly 3,500 companies that have gone public over the past five years, more than half are trading below their offering price.
text: Lerner was subsequently fired by Don Valentine, one of Cisco's early investors, just after the company went public.
text: However, many startups will issue a right of first refusal, which requires investors who want to unload stock before a company goes public to first offer to sell it back to the startup or its early investors (called a tender offer).
text: The venture capital fund can retain this investment even after the company goes public as the test for whether an investment is a “qualifying investment” is applied at the time of initial investment by a fund.