"In one way, Dropbox suffers from being compared with rival online storage firm Box Inc., which went public in December, according to investment bankers. Box has a stock-market value of $1.65 billion, or less than six times its expected fiscal 2016 revenue. Dropbox would need revenue of roughly $2 billion to support a similar valuation in the stock market, but one investment banker estimates the company’s revenue is likely to hit just $500 million this year. Dropbox declines to comment on its revenue.Tech Startups Feel an IPO Chill - WSJ
“The thing that worries me the most about all these [billion-dollar valuations] is that you need a public market to get liquid,” says Chris Douvos, managing director of Venture Investment Associates, a Peapack, N.J., firm that invests in funds and startups. “But who’s going to buy at these valuations? It’s all priced for perfection.”"
Tuesday, October 20, 2015
Tech Startups Feel an IPO Chill - WSJ
From a stark unicorn market dynamics reality check