Twitter: An “Emerging Growth Company” On September 12, 2013, Twitter announced its initial public offering (IPO) filing through its own Twitter feed: “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”1 At the time, this tweet was the “only public…
Month: November 2013
Dodd-Frank and Hedge Funds
On July 21, 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. One of the more notable provisions contained in the act is referred to as the Volcker Rule. A portion of the Volcker Rule deals with the relationship between banking entities and hedge funds and/or private equity funds. The general rule…
The South Korean Private Equity Market: Transitioning from Foreign to Domestic Funds
Overview and History After the Asian Financial Crisis in 1997, South Korea’s private equity market attracted a multitude of global investors, particularly in the distressed and buyout market.1 In fact, foreign funds such as New Bridge Capital and Carlyle were major players in the corporate restructuring process after the financial crisis.2 It was only in…
Detroit’s Burgeoning Entrepreneurial Ecosystem
When most Americans think of Detroit today, they think of the largest municipal bankruptcy in U.S. history, pictures of derelict buildings and houses, and ultimately, a city on the decline. However, ask a true entrepreneur what they think of Detroit today, and you will most likely be given an answer that can be summed up…
(Jump)start Our Business Startups: The JOBS Act 500+ Days Later (Part 1)
One year, 7 months, and 6 days have passed since President Obama signed the Jumpstart Our Business Startups (JOBS) Act into law. The product of rare bipartisanship, the JOBS Act was praised on both sides of the aisle as improving access to capital for US small business, which could in turn drive economic growth.1 While…
Title II of JOBS Act Goes Into Effect, Creating Exciting New Opportunities for Start-ups
On Monday, September 23, 2013, Title II of the Jumpstart Our Business Startups Act (JOBS Act) went into effect allowing start-up companies to seek equity investments publicly without having to register ownership shares for public trading. Title II is a significant aspect of the JOBS Act, a post-recession initiative to stimulate the American economy, in…
From Startup to IPO: The Long Haul
The Startup Let’s say you and two friends decide to pursue a company in Internet technology, Gray Matter. You three will be co-founders and hope to one day take the company public. Initially, the company will be incorporated as a C Corporation, typical for most public companies or those hoping to go public.1 Seed Money:…
Taking Back the Castle: Michael Dell, Silver Lake, and the Battle for Dell Inc.
On September 13, 2013, shareholders of the personal computer giant Dell Inc. voted to approve the proposed leveraged buyout of the company by founder Michael Dell and the private equity firm Silver Lake.1 The vote put an end to the nearly year-long saga that pitted two of the country’s wealthiest men against one another. Although…
Berlin the New Tech Startup Hotbed?
“The intersection of art and technology,” exclaimed the founder of SoundCloud, Alexander Ljung, when asked about why Berlin is a great place for startups.1 Young people are drawn to Berlin because of its “raw, artsy atmosphere that rivals Brooklyn’s as an icon of global hip.”2 Is Berlin’s startup scene merely a mirage or is Berlin…
Zombies of the Private Equity Industry Pt. II
A previous blog post discussed the existence of zombie funds in the private equity industry as well as their effect on the investor market. Approximately $116 billion is sitting in almost 1,200 zombie funds and their presence is an impediment to the growth of investor wealth while continuing to accrue management fees for ineffective managers.1…