Another Way to IPO
Posted by: Nick Leiber on June 02, 2009
Now this sounds like a promising idea, given what had been a prolonged IPO drought. Backed by venture capital firms and institutional investors, a company named InsideVenture just introduced a new way for early-stage companies to raise money through what it calls a “hybrid public-private offering,” Bloomberg reported yesterday.
Here’s the crux of what makes InsideVenture’s service different:
“The HPPO process will be similar to an ordinary IPO, where investment banks underwrite the offering and sell shares to the public, said [David Weild, executive chairman of InsideVenture and] a former vice chairman of the Nasdaq Stock Market. Companies will file quarterly reports with the U.S. Securities and Exchange Commission after they go public. The difference is that InsideVenture will help companies sell shares to its members before the offerings become final.”
We’ve reported on creative approaches to IPOs in the past. What do you think of this new take?