0404 | Do IPOs Hurt Innovation?

LDRLB

Interesting new research from Shai Bernstein at Stanford University’s Graduate School of Business suggests that companies that go public experience a significant decline in innovation post-IPO. Innovation innovation IPO LDRLB Podcast

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063: How to Make an Impact on a Corporate Board of Directors | with Betsy Atkins

Engaging Leader

and International companies, experiencing 11 IPO’s, three bankruptcies, many CEO changes, acquisitions, divestitures, “go private’s” and mergers of equals.

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Hackers and Hummingbirds: Leadership Lessons from Facebook CEO Mark Zuckerberg

Terry Starbucker

In his IPO letter Mark Zuckerberg wrote: “I started off by writing the first version of Facebook myself because it was something I wanted to exist.

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Exit and Succession Planning

CO2

All the details of their sale of the company through an IPO (Initial Public Offering) and how it changed their lives. by Gary Cohen. The Business Forum Show Jeff Johnson (L), Rick Diamond (M) and Gary Cohen (R).

How Google Has Changed Management, 10 Years After its IPO

Harvard Business Review

If you only read one piece, make it this one by David Garvin in 2013 , on how Google sold its engineers on management. Another look at part of Google’s innovation strategy comes from a 2013 piece on DARPA , the government research agency.

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Preview Thursday: Benefit Corporation Law and Governance: Pursuing Profit with Purpose

Lead Change Blog

I spent almost 30 years as a lawyer in private practice, advising business leaders on Delaware corporate law issues – addressing matters like preferred stock financings, IPOs, mergers, hostile takeovers, proxy contests, corporate governance and fiduciary issues.

2012 Women in Business and the Gender Gap Research and Statistics

Women on Business

The year is almost over, and as we prepare to enter 2013, it’s the perfect time to reflect on the data that quantifies the gender gap that women in business face. Research Identifies “Green Ceiling” for Women Seeking IPO Investors.

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Disruptive Trends to Watch in 2013

Harvard Business Review

The enterprise was a hotspot of disruption, with WorkDay having one of the most successful IPOs of 2012, Square establishing itself as a clear leader in the race to develop disruptive payments solution, and Kiva Systems' $775 million acquisition by Amazon.com validating its disruptive warehousing solution. What disruptive innovations are set to take similarly big strides in 2013? A generation ago, incumbents that struggled to respond to disruptive innovations had an excuse.

What Moleskine's Market Position Really Looks Like

Harvard Business Review

A Quartz article on the IPO of hipster journal company Moleskine included this chart that comes from the company's prospectus. The editors managing the Visualizing Data Insight Center have asked us to submit visualizations that we find compelling or effective.

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What Wall Street Wants to See From Twitter’s Executives (and Why It’s Wrong)

Harvard Business Review

Between now and the IPO, every bit of information about the company’s finances and other metrics will be closely scrutinized. Research shows that firms’ management teams influence the success of their IPOs. A research brief by academics at Arizona State and Florida State summarizes the many studies that have assessed the impact of people on IPO performance and pinpoints several attributes that have an impact.

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What Moleskine's Market Position Really Looks Like

Harvard Business Review

A Quartz article on the IPO of hipster journal company Moleskine included this chart that comes from the company's prospectus. The editors managing the Visualizing Data Insight Center have asked us to submit visualizations that we find compelling or effective.

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Twitter, that Old Media Darling

Harvard Business Review

Its IPO is “ unusual.” ” The IPO will finally put a market value on Twitter—is it $10 billion? So does this mean Twitter is being overvalued as a new media brand as it approaches its IPO? Did you hear? Twitter’s initial public offering is coming.

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Don’t Build Your Startup Outside of Silicon Valley

Harvard Business Review

For founders thinking about launching companies outside of New York, Massachusetts, or California, that means your odds of pre-IPO success are automatically lower before you’ve even started. The entrepreneurial zeitgeist today is hard to ignore.

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How Chinese Companies Can Develop Global Brands

Harvard Business Review

Government measures intended to cool an overheating economy, such as tightening loans and freezing IPOs, are holding back companies that need capital to grow. China leads all emerging markets with 89 companies on the latest Fortune Global 500 list of the world’s largest.

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Hire a Great Chinese Engineer by Impressing His Girlfriend's Mom

Harvard Business Review

They wanted to know what my plans were for IPO. Even successful Internet companies like Baidu, Tencent, and Alibaba are closely held and most of the gains from their IPOs went to the top managers.

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

Harvard Business Review

But if in reaction to Pandora, SiriusXM would instead have launched a free, advertising-supported version of their content for online and mobile, they might have permanently delayed Pandora''s IPO by denying them the ability to grow users.

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Twitter Isn’t Just Another Social Company

Harvard Business Review

Last week, Twitter’s management subtly let the world know of their upcoming IPO in 140 characters or less. And in almost all of these cases, Twitter is just being thrown into the role of the next social tech IPO. Instead of discussing Twitter as a business, and its strengths and weaknesses, most pundits are simply throwing Twitter into a broad tech category and speculating about IPO valuation.

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Enabling the Natural Act of Entrepreneurship

Harvard Business Review

For example, it is nearly impossible for scaling ventures in many countries, including Brazil and Denmark, to count on an IPO for a successful exit. Having startup policies without taking care of access to IPO markets is like having a fast new ramp onto a pot-holed dirt road.

The Dell Deal Explained: What a Successful Turnaround Looks Like

Harvard Business Review

Lerner has another paper relevant to the Dell case, which looks at the performance of buyout companies'' stock prices after they IPO, including public firms taken private in the deal.

Three Things that Actually Motivate Employees

Harvard Business Review

To a person, they look astonished when I ask whether their dedication comes from anticipation of the money they could make in the event of an IPO. One person says that he can’t let himself think about an IPO. For these professionals, a future IPO is outweighed by today’s OPI — the opportunity for positive impact.

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In Big Companies, Lean Is Only One Piece of the Puzzle

Harvard Business Review

Investors are involved for the long haul, understanding that startup managers will have to experiment and fail along the way to a successful IPO. In 2010, one of us was sitting in a room at the Harvard Business School with Eric Ries and a number of budding entrepreneurs.

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Five Sources of Start-up Ideas

Harvard Business Review

Does anyone dispute that 2013 has been the year of the tech company? Twitter and Zulily popped more than 70% and 80% respectively on the day of their recent IPOs. LinkedIn has surged over 100%. Even Facebook’s stock, once completely out of favor , has doubled in value over the past six months. As prices of internet bellwethers reach stratospheric levels, more people are being enticed to start companies than ever before.

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Become Your Own Best Gatekeeper

Harvard Business Review

He polled his VC colleagues: "The odds of actually receiving funding from a cold email: 50,000 to 1," he writes in his book Mastering the VC Game: A Venture Capital Insider Reveals How to Get From Start-up to IPO on Your Terms. "So I spend my life trying to get past gatekeepers.

To Improve African Education, Focus on Technology

Harvard Business Review

With Facebook’s $115 billion market cap on its IPO day, Mark Zuckerberg created wealth nearly equivalent to half of Nigeria’s GDP in 2012. The value created by Facebook and a few other tech IPOs exceeds the GDP of most African regions. Africa is a hopeful continent with an exuberance driven by minerals, hydrocarbon, and commodities. These present drivers of its economy, however, are under threat from technology.

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Culture, Not Leverage, Made Wall Street Riskier

Harvard Business Review

Before the IPO in 1999, partners of Goldman Sachs owned equity in a private partnership. Over the summer, U.S. regulators announced new rules that would limit the leverage (ratio of debt or assets to equity) that the biggest U.S. banks can use in their business. The reasoning, backed by several respected scholars, is that leverage was a leading cause of the financial crisis.

Here's What the Internet Is Up To

Harvard Business Review

The Mysteries of the Cereal Box (New Republic) How Engineers Redesigned the Office Chair for Smartphone and Tablet Users (Popular Science) How Facebook''s IPO Was Bungled by Nasdaq''s Computers (Quartz Mobile in China and Collecting Your Fitness Data. As she does every year, Mary Meeker of Kleiner Perkins has bestowed upon us over a hundred slides that analyze internet trends.

Facebook's Scramble-and-Shake Strategy

Harvard Business Review

But since its spluttering IPO last year, I''ve been coming around to the notion that Facebook is headed for a status more interesting than either flash-in-the-pan or all-conquering global behemoth. It''s hard to think of a company providing a mostly useful, non-polluting service that gets rooted against as much as Facebook does. Well, maybe I can think of a couple: AOL and Microsoft in the second half of the 1990s.

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When a Product Fails, Find a New Direction

Harvard Business Review

Cephalon's IPO was in 1991, part of the second wave of biotechnology companies to sell shares to the public. Your company has just developed an amazing new product. Years of development, energy, and, of course, money have gone into it. Hype and excitement behind the launch pushes it into high gear. But it falls apart at the seams at the last moment, leaving your company on the brink of disaster. What do you do next?

Find Out if You're a Scale-Up Entrepreneur with This Two-Minute Test

Harvard Business Review

It was the CEO''s incredible persistence (and experience) in all aspects of selling — sales organization, compensation, pipeline management, and selling skills — that not only saved Voltaire from oblivion, but eventually propelled it to a NASDAQ IPO. Cool ideas for new businesses are a dime a dozen. That — plus all the new tech enablers such as instant websites and e-commerce platforms — makes it deceptively easy to start up a new venture.

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Why Unicorns Are Struggling

Harvard Business Review

When financial services company Square priced its IPO at $9 a share last November, well under the $15+ price that private investors paid the year before, it was a cold shower of reality for the 6-year-old company.

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Alibaba Looks More Like GE than Google

Harvard Business Review

Alibaba, the Chinese internet titan that filed for an IPO in the U.S. last week, could be the largest tech IPO in history. But Alibaba doesn’t look much like Facebook, Google, or even Amazon. Instead, it operates more like GE.

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Myths of the Gig Economy, Corrected

Harvard Business Review

Back in 2013, a much-touted survey suggested that by 2020 — just over a year from now — a whopping 40% of the workforce would be so-called contingent workers, a number that would include contractors, temps and the self-employed. Nattapol Poonpiriya/Getty Images.

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Every Fast-Growing Company Has to Combat Overload

Harvard Business Review

In early 2013, Norwegian went public and became one of the most successful IPOs of the year, closing the year 87% above its IPO price. It feels horrible: You’re scaling up aggressively and working harder than ever, but with each passing day you feel more overwhelmed.

What Spinning Off a GE Business Taught Me About Managing Ultra-Fast Change

Harvard Business Review

Major organizational changes, covering everything from recruiting and branding to regulatory approvals and marketing, happened in rapid succession, with a hard deadline of 12 months to get it all done for the IPO — and 18 months from the IPO until our full separation from GE. We have hired more than 5,000 new employees since beginning the effort in late 2013.) Change management can be a test for any organization.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business Review

On February 13, 2018, the New York Times reported that Uber is planning an IPO. Twitter reported a loss of $79 million before its IPO, yet it commanded a valuation of $24 billion on its IPO date in 2013. steven moore for hbr. Uber’s value is estimated between $48 and $70 billion, despite reporting losses over the last two years. For the next four years, it continued to report losses.

What Angel Investors Value Most When Choosing What to Fund

Harvard Business Review

The experiment ran for eight weeks in the summer of 2013, and spanned 21 startups, 4,494 investors, and nearly 17,000 emails. The formula for long-term success may be different, though, when you consider how founders are often replaced , for various reasons, before the startup’s IPO.

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Startup Accelerators Have Become More Popular in Emerging Markets — and They’re Working

Harvard Business Review

When we began collecting data in 2013 to explore differences between startup acceleration in emerging markets and in high-income countries, we expected stark differences. More About the Research Since 2013, the Entrepreneurship Database Program at Emory University has been partnering with accelerators and entrepreneur support programs to collect detailed data from entrepreneurs during their application processes.

?Numbers Show Apple Shareholders Have Already Gotten Plenty

Harvard Business Review

In August 2013, Icahn bought more than $1 billion worth of Apple shares. The only time in its history when Apple raised funds on the stock market was its 1980 IPO, which provided it with $97 million. Carl Icahn is at it again. On Oct.

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How the Market Ruined Twitter

Harvard Business Review

billion in its 2013 IPO) that investors have plowed into it. Could Twitter have chosen not to follow the standard VC-to-IPO path that has brought it to this pass? There was a time when Twitter could be described as “plumbing.” Now the best description might be, “giant bank account with a company attached.”

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Alibaba: The First Real Test for Amazon’s Business Model

Harvard Business Review

Generating over $80 billion in sales in 2013, Amazon’s business model, with its ability to capture growth through disruption of retail stores, has proven to be very successful. One the most interesting challenges that 2014 is going to bring is the IPO of Alibaba in the United States. This revenue model has served it well, as Alibaba’s group revenue in 2013 is expected to be over $160 billion.

Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

2013 had all the signs of being a comeback year for venture capital. Booming public equities and a recovered IPO market generated record portfolio company exits and distributions from VC funds. Yet 2013 annual industry performance data from Cambridge Associates shows that venture capital continues to underperform the S&P 500, NASDAQ and Russell 2000.

What Initial Coin Offerings Are, and Why VC Firms Care

Harvard Business Review

Rather than tying up vast amounts of funds in a unicorn startup and waiting for the long play — an IPO or an acquisition — investors can see gains more quickly, and can pull profits out more easily, via ICOs. More than $270 million has been raised in ICOs since 2013, according to Smith and Crown (not including the $150 million raised in The DAO scandal , which was returned to investors).

A Simple Way to Test Your Company’s Strategic Alignment

Harvard Business Review

A report commissioned by Barclays in 2013 revealed a corporate culture that wasn’t fit for purpose, tending to “favor transactions over relationships, the short term over sustainability, and financial over other business purposes.”