We are witnessing a paradigm change by investors as a result of the WeWork debacle. While investors still place a significant premium on growth, there is an increasing demand in boardrooms and from investors for entrepreneurs to show a reasonable path to profitability in a foreseeable time frame. While this has put a bit of a damper on some high-flying private companies to retrench their plans for rapid growth, we think this change is overall a good thing for the marketplace. Companies that are built to be sustainable over the long term are always able to find capital as and when needed. Further, a cycle of unsustainable growth followed by bust creates a great deal of collateral damage that weakens the entire emerging companies ecosystem. Growth balanced with a path to profitability is such a common sense approach, and we applaud all who are now taking that path!
Our current issue includes important tax guidance on the treatment of virtual currencies, a “how-to” for writing gender-neutral agreements, and a terrific podcast on the basics of venture debt. We hope this information is helpful and informative. If there are specific topics our readers would like us to address in future editions, please let us know.
As always, we welcome your questions and inquiries. Be sure to visit our website for emerging companies @ mintzedge.com, and please sign up here to receive email alerts when new articles are posted to MintzEdge.
Dan + Sam