In a segment on CNBC entitled Fear and Loathing in IPO land, Kate Kelly shares her experiences from her participation in the Venture Forward conference where top angels /venture capitalist investors met. Some of the facts shared by Kelly include:
- Some Tech investors feel the Traditional offering mechanism is broken
- It takes on average 9 years for a tech company to be ready for an IPO
- $100 Million in Revenue is essentially required to get there
- Of the 3000 companies which receive venture funding each year, only 150 go public
- The expense and administration of going public is prohibitive
- Many companies view being taken over more attractive than going public
- The Jobs Act may help…
In light of all these challenges for companies to go public one would assume the SEC would be motivated to facilitate equity crowdfunding as opposed to creating additional hurdles.