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Three Headwinds for Facebook's IPO

Harvard Business Review

And despite all of Facebook's user support, investors should be skeptical of the company's pricey IPO. According to ComScore, at the end of 2011 Facebook accounted for a shocking 28% of U.S. There is a lot of emotion behind the Facebook IPO. I don't mean to suggest it will fall 70% in value after its IPO pop.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

In the first quarter of 2011, Groupon posted a net loss of $113.9 Finally, reaching profitability quickly ensures that when outside financing dries up, the venture can succeed on its own. Now, the venture capital markets cannot supply more capital and the company must depend on the IPO market to finance its money-losing operations.

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Why Tech Entrepreneurs in Developing Countries Struggle to Raise Funds

Harvard Business Review

The company has since received a commendation letter from the Nigerian Presidency, and was one of ten companies (out of 3,300 firms) recognized in the 2011 Africa Awards for Entrepreneurship , which was organized by Legatum and Omidyar Network (a foundation started by eBay founder Pierre Omidyar and his wife Pam). It's something that U.S.

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Why Weight Watchers Can't Ignore the Call to Go "Free"

Harvard Business Review

Nevertheless, our look at the reactions of 34 incumbent firms to "free" entrants across 26 product markets showed that launching a "free" strategy is too often a last resort, if undertaken at all (See my article, " Competing Against Free ," with co-authors Jeff Dyer and Nile Hatch, in the June 2011 issue of Harvard Business Review ).

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Don’t Build Your Startup Outside of Silicon Valley

Harvard Business Review

From 2006 to 2011, the number of startups founded and funded outside of California, Massachusetts, and New York has grown by almost 65%. Many small businesses don’t require the sort of financing required by firms in pursuit of s-curve growth. And the numbers tell a similar story: startups are mushrooming up everywhere.

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An Insider’s Account of the Yahoo-Alibaba Deal

Harvard Business Review

content (news, finance, weather) into two Chinese languages, and directory access to 20,000 web sites, an approach that the company had adopted elsewhere. On the finance and deal side, we also felt a strong kinship with Tsai. Only legal, finance, and human resources still reported back to headquarters.

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How to Know If a Spin-Off Will Succeed

Harvard Business Review

The outsiders provide new blood in support functions such as finance, legal, or administration. The insiders bring a detailed understanding of the company’s assets, capabilities, customers, competitors, and stakeholders. The challenge for each successive owner is to keep the company’s management team motivated to follow the tempo.