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The paradox of overvalued financings It's the burn rate relative to the value creation, not the financing event, that truly determines accretion or dilution.
"I think of a public offering as a financing event for the company," he says.
"Ultimately, it shouldn't be anyone's goal to go public; this is just a financing event to create liquidity for investors and shareholders," he said.
It's always a financing event," Nelsen says.
An IPO is a transformational process and not just a financing event.
Few beginner entrepreneurs understand how much ownership dilution occurs during a major financing event.
Similar(42)
What's particularly complicated is that financing events are incredibly inaccurate measures of value creation.
The company is a fixture at clean energy financing events, and its partners have impressed me with their level of knowledge in our conversations at such events.
In the recent era of an overcapitalized venture capital industry, we've seen some extraordinary financing events across nearly every startup stage.
It is often measured in financing events, but it actually plays out every day in the choices the startup makes and the work the startup accomplishes.
"We tend to distribute on milestones, not financing events," Nelsen said of his firm's approach to exiting a portfolio investment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com