High-growth tech companies have taken big market hits, but it's far from certain they've bottomed. The IPO market could take years to recover.
The fundamental shift in the public markets has taken place, with investors reconnecting to fundamentals and "getting in touch with what a sustainable growth rate of companies is," said Bill Ford, CEO of growth equity firm General Atlantic, also speaking at DA. But that reset for companies that are growing without profits hasn't fully translated to the private markets yet.
Ford's message to his own portfolio companies is to extend their runway for thinking about an exit, manage costs and key performance indicators on a path to long-term profitability. "Buy yourself time. That's what we are preaching to all our portfolio companies," he said. "Figure out what the growth drivers are, and invest in those areas, and expect a longer runway before you can go public," he added.
"For a portfolio company, it might be a terrible time to sell, but it's an awesome time to consolidate. ... and you might be better off in the long term," Bravo said. "Our school of thought has always been protect the profit and loss statement" Bravo said. "Live and die by it and never dip into margin unless you have a compelling investment you can measure separately."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
1 in 5 Employees Is Highly Engaged and at Risk of BurnoutWhile engagement certainly has its benefits, most of us will have noticed that, when we are highly engaged we can also experience something less than positive: high levels of stress. A recent survey conducted at Yale University examined the levels of engagement and burnout in over 1,000 U.S. employees. For some people, engagement is indeed a purely positive experience; 2 out of 5 employees reported high engagement and low burnout. However, the data also showed that one out of five employees reported both high engagement and high burnout. These engaged-exhausted workers were passionate about their work, but also had intensely mixed feelings about it – reporting high levels of interest, stress, and frustration. These apparent model employees also reported the highest turnover intentions in the sample – even higher than the unengaged group.
Read more »
Shooting targets high school football team in Philadelphia, killing 1, wounding 4Police said players were walking off the field behind Roxborough High School in Philadelphia after a scrimmage when four people opened fire.
Read more »
School officials respond after deadly ambush shooting near Roxborough High School'We absolutely have to believe we can do better in our city,' Philadelphia Superintendent Dr. Watlington said after the shooting claimed the life of a 14-year-old boy.
Read more »
Dollar marches to new 20-year high, sterling under pressureNervous financial markets propelled the safe-haven dollar to a two-decade peak on Wednesday as rising global interest rates fed recession worries, while sterling drifted lower after the latest warnings about Britain's radical tax cut plans.
Read more »
10-Year Treasury Yield Tops 4%, Soaring to 14-Year HighThe benchmark 10-year Treasury briefly topped 4% on Wednesday as markets took in Federal Reserve speaker commentary that hinted at further interest rate hikes.
Read more »
Opinion: May these High Holy Days bring meaning and hopeThe Jewish New Year is the beginning of ten days that invite us to contemplate who we have...
Read more »