I have long been a proponent of going public because I believe it creates stronger, more disciplined companies that deliver greater shareholder value. It's great to see the pendulum in the founder and venture capital community swinging away from the "stay private longer" attitude that dominated tech over the last decade.
That said, the traditional IPO listing path has many shortcomings. I experienced this firsthand in 2011 when we took Zillow public. The cover price on the original S-1 was $12-$14 a share, but we upped it to $14-$16 due to strong demand on the IPO roadshow. We priced it at $20 a share, only to watch the first trade open at $60 that day. (Note: Zillow has since done a 3-for-1 stock split, so divide these numbers by three if you're trying to compare it with today's ~ $100 stock price.)
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Proptech startup Pacaso emerged from stealth mode Thursday, aiming to make it easier for a larger swath of the population to own a second home, or at least a portion of one.
The company announced a $17 million seed round led by venture capital firm Maveron, with participation from Global Founders Capital, L.A.'s Crosscut and individual investors such as former Starbucks CEO Howard Schultz, real estate coach Tom Ferry, former Zillow executive Greg Schwartz, and Amazon CEO of Consumer Worldwide Jeff Wilke. Pacaso also raised $250 million in debt financing to purchase homes.
'It's a No-Brainer': NYC and SF Tech Workers Move to LA for Sun, Space and Cheaper Rent During the Pandemic
Editor's note: This is the first of a two-part series. Read the second part here: The exodus from L.A. Tech workers who traded cramped one-bedroom apartments by the ocean for 4-bedroom houses in Las Vegas.
Roger DaSilva, who grew up in New Jersey and lived in New York for two decades, long dreamed about trading the honking horns and gridlock of Manhattan for the sand and ocean breezes of Manhattan Beach.
"When I would visit L.A., it just felt like a different country with the people, the easy going nature, and the genuine friendliness of the people," said DaSilva. "It's that laid back vibe, and I love the beach and the sun."
But there was one thing stopping the move. DaSilva is an outsourced chief financial officer so he can work from anywhere, but his wife works at an advertising agency, which required her to be in the New York office full-time. Then COVID-19 hit and the DaSilva's could work from anywhere. In June, they listed their Murray Hill three-bedroom home and rented a house in Venice Beach while they searched for something more permanent.
"If it weren't for COVID, we would still be in New York," DaSilva said.
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