The revelation of American start-ups insisting on private unlisted to Chinese entrepreneurs

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For Chinese entrepreneurs and even all enterprises, the term "listing" is always a deadly attraction. Both the top and bottom employees are listed as the greatest glory. Indeed, after listing, financing can become simpler, wealth will increase rapidly, even in contact with peers, but also more confident. But on the other side of the Atlantic, startups will have to change the trend, trying to keep the private sector out of the market.

And these startups are not small businesses, including Uber, Airbnb and other giants. There are many reasons why they insist on private property, but in any case, it will give more inspiration to Chinese entrepreneurs--perhaps a blind listing is not as good as it might seem, and insisting on private property may bring more possibilities. In other words, traditional cognition is not necessarily the truth. Even if it is a major event such as listing, it is sometimes an option to reverse the market.

Stick to the private! American startups confront tradition

All along, the United States is the global Internet vane-after all, where the birth of too many Internet miracles, myths. Recently, the topic of Internet focus in the United States is the anti-traditional behavior of start-ups insisting on private unlisted. Even the most open-minded American internet giants have been arguing about such behaviour. Google VCs, for example, Bill Maris warned that technology startups are currently waiting for "a long time to go public".

But it is clear that Google's top VCs are dissatisfied with the delay in the IPO of startups, and cannot prevent the latter from insisting on private property. For example, Uber, the famous taxi app that Google has invested in, has financed more than $10 billion and is currently valued at $62.5 billion. Airbnb, the US short-term website, is financing more than $1.5 billion, valued at more than $25.5 billion.

The reason they insist on not listing is that they can raise huge sums of money through continuous multi-round financing. As long as the day is not listed, they can guarantee the independence of the business, the initiative in their own hands, without the impact of the capital market, not to meet the interests of investors, the price of the high and low to do against the long-term development of decision-making.

For Chinese entrepreneurs, there is no need for a rush to go public if financing is still possible. Of course, those startups that fail to raise money are not expected to go public. The start-up giants like Didi and the American regiment can all wait. For them, since they have become the dominant in their respective fields, the next thing to do is to stabilize their respective markets, and then consider listing when the foundation is truly not shaken by external risks--a natural advantage of the Chinese internet pioneers rushing to go public for funding.

Beware of financing risks! No listing is also a distress

While American startups insist on private ownership, seemingly maverick and pioneering, this does not mean that insisting on a non-listing must be correct, but also based on a specific analysis of their circumstances. If some start-ups overestimate their ability to see financing as extremely easy, it is possible to eat a big loss.

In this, Google VC head Bill Maris Maris said that in the future there will be some start-up companies regret not in the open market to issue shares, instead of the choice by overvalued value in the private market to finance. "It's hard for startups to survive because they set the threshold very high when it comes to financing," he said. There will be some volatility in the market and some startups will lose a lot of money. That said, with the growth of startups, financing could be a stumbling block. Once there is an irresistible risk, it can be a hit for startups. At present, the group's increasingly difficult financing schedule is a good reflection of this.

In addition, if startups do not go public after reaching a certain height, they can create internal turbulence. Because many start-up investors, employees of the composition of the remuneration is a part of the company's equity composition, insist on not listing, it means that can not be cash, in the long run, will allow investors and employees to lose the patience of waiting. Moreover, the non-listing means that the operation, financial and other aspects of the opaque, can not accept the supervision of the open market, the regularization of the start-up operation is unfavorable.

The risks that have to be considered are factors that must be taken into account by Chinese entrepreneurs. Once there is a discrepancy, it is possible to overturn past efforts.

Need to learn balance in walking on steel wire

How to find a balance between keeping private and going public is a question that Chinese entrepreneurs must consider from now on. When financing can maximize the development of enterprises, it is necessary to maintain a strong private property, at a certain height, need to market to balance the interests of all parties, or seek further development, should be listed on the agenda.

For Chinese entrepreneurs, the game between private and public is like walking on a wire, and learning to be balanced to keep yourself safe. Unfortunately, the vast majority of Chinese entrepreneurs are still struggling to survive in this capital winter, and the question of whether or not to go public seems a little too remote ... (New discoveries of science and Technology, Constantine/Wen)

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The revelation of American start-ups insisting on private unlisted to Chinese entrepreneurs