An Irregular Startup Company
We had a company meeting today, with the usual corporate updates and questions from the audience. There were the usual questions about when were we expected to go public (as all startup companies aimed to become).
What was notable was the answer. Our CEO himself declared that if we did make it to IPO, that would be the beginning of our work, NOT THE END. It was heartening to hear that the executives were indeed looking out for the long-term sustainable growth of the company. He commented that any rush to IPO might enrich a few people (including himself no doubt), but a subsequent price collapse after the lockup period might disillusion many and that was not the expected outcome that he’s like to see.
It was a very good answer. And I’m proud that he stood up to the question and avoided any speculation.
This was a far cry from my days at TFC. September, 1999 - just before the peak of the Internet bubble - when everyone in the company basically talked more and more about stock prices and how much their options would be worth. It was mere luck that the lockup period ended just before the peak in March 2000 and a lucky few were able to retrieve their money before the prices sunk. The company and its employees never recovered from the disappointment of our vanishing revenues and broken promises. Layoffs followed, and the company finally folded a few years later. It was a tragic story, typical of the Internet boom and bust, and I’m glad my current place isn’t like that.