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August 5, 2012 12:00 am GMT

Who To Blame For Failed IPOs

train_wreck_at_montparnasse_1895Praise be to Box, the cloud storage company that recently waggled $125 million from private investors to continue its growth trajectory, expand internationally and continue ratcheting up its valuation into the billion-dollar range.Theres a lot to like in this story, starting with Boxs service. I pulled Box into our company and we use it religiously to version control internal documents. Its awesome and Aaron Levie and his team deserve to get rich from their hard work.And 15 years ago, you could have gotten rich from his work too. Levie would have brought his company to the public markets, seeking growth capital, and you could have invested and watched Box grow from a $600 million valuation last year to a $1.2 billion valuation today. Box would have been open to average investors, folks aiming to see capital appreciation in the public markets and a modest return on their small savings. The high tide of Silicon Valley could have raised even the smallest boats.But today, Box remains private. When it does go public, it will no longer be in its high-growth phase. Chances are it will look a lot like the companies that have gone public in recent years, ballyhooed and heaped with expectations that have failed to produce.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/9ue49MlxU5o/

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