• NaN
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    1 year ago

    This best answers the OPs question. We know why it happens in general, but this is why everything is doing it in overdrive right now.

    I also think Spez is trying to rush into an IPO before the bottom truly drops out and the company folds.

    • poVoq
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      11 year ago

      There is a significant change in investment climate since the beginning of the year.

      Before you could basically get another round of investments very easily even without being profitable as central banks were lending money for free more or less. This meant that the current VC investors could usually find a bigger fool to offload their investment to.

      However now the few remaining new investors actually want to make a return of investment from the company itself and not just artificially pump it up further to find another buyer for their exit. So the current investors are putting a lot of pressure on these companies to appear profitable no matter what so that they can exit their investment.

    • @LachesKid
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      11 year ago

      That makes me wonder if someone else would pick it up in an asset sale and keep it running (from the users’ point of view). That doesn’t necessarily solve the revenue problem, but it does shed debt that would have to be serviced, which would reduce costs, which would increase the bottom line.