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> It's rational for the company to try to pull them Aren't there issues with follow-on offerings? By taking the entire IPO pot for itself, the company will pro
by ctlby 7y ago
> It's rational for the company to try to pull them
Aren't there issues with follow-on offerings? By taking the entire IPO pot for itself, the company will probably struggle to find investors if/when it needs to come back to the capital markets--which seems like an eventuality with Lyft.
- nostrademons 7y agoPotentially, but for high-growth unprofitable companies management is usually betting that they can either use the extra money raised to fix the fundamentals of the business in time for the next capital raise, or else they need to dump their stocks on the public market and get out because there won't be a next capital raise. I'd bet that #1 is more common in the management team's head, but #2 is more common in reality.