Uber plans to raise another $ 1 billion - experts advise companies to go for an IPO
In the summer, Uber announced its intention to raise $ 1 billion for development in China. After the completion of the round, the start-up valuation exceeded $ 50 billion. However, the company intends to raise another $ 1 billion. If the round is successful, the Uber valuation could skyrocket up to $ 70 billion. With this estimate, Uber will increase the gap from competitors in the fight for the title of the most expensive private company in the world.
It is noteworthy that in 2011, Facebook was estimated at about the same amount. And in 2012, the company entered the IPO. But does Uber want a public offering?
A new round of financing will be the eighth in a row in the last five years of the company's existence. Uber management plans to hold talks with investors in the next few weeks.
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Some experts believe that the company is ready for public offering. However, the founder and CEO of Uber, Travis Kalanik, believes that it’s still a bit early for companies to go IPO, reports Business Insider with reference to the New York Times. Despite the high achievements, Uber is still in the status of "junior".
In addition, given the unstable situation on the stock exchanges, entering the IPO for the company is a bold, but risky step. As practice has shown, in such periods, many startups with an estimate of more than $ 1 billion do not dare to go public. According to the company Dealogic, since the beginning of this year, only 19 companies in the United States held an IPO.
Uber's first investor, venture capitalist Bill Gurley believes that investing in technology companies requires great care. After several years of very rapid growth, many startups, and both the volume of investments and the spending of such companies have grown, they still have no clear way of making a profit.
No matter how much a private company is valued, investors cannot get an investment until a startup goes to an IPO. The company's liquidity can be the only real assessment of any startup, according to Gurli, and all private evaluations are just numbers on paper.
It is noteworthy that in 2011, Facebook was estimated at about the same amount. And in 2012, the company entered the IPO. But does Uber want a public offering?
A new round of financing will be the eighth in a row in the last five years of the company's existence. Uber management plans to hold talks with investors in the next few weeks.
')
Some experts believe that the company is ready for public offering. However, the founder and CEO of Uber, Travis Kalanik, believes that it’s still a bit early for companies to go IPO, reports Business Insider with reference to the New York Times. Despite the high achievements, Uber is still in the status of "junior".
In addition, given the unstable situation on the stock exchanges, entering the IPO for the company is a bold, but risky step. As practice has shown, in such periods, many startups with an estimate of more than $ 1 billion do not dare to go public. According to the company Dealogic, since the beginning of this year, only 19 companies in the United States held an IPO.
Uber's first investor, venture capitalist Bill Gurley believes that investing in technology companies requires great care. After several years of very rapid growth, many startups, and both the volume of investments and the spending of such companies have grown, they still have no clear way of making a profit.
No matter how much a private company is valued, investors cannot get an investment until a startup goes to an IPO. The company's liquidity can be the only real assessment of any startup, according to Gurli, and all private evaluations are just numbers on paper.
Source: https://habr.com/ru/post/295678/
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