It’s time to bring back the real IPO: Initial profitable offering

It’s time to bring back the real IPO: Initial profitable offering

No startup should have to depend on a “pop” to succeed.

No company should aim to become an investment unicorn, where profitability is a mythical creature that people talk about but never see.

A “build it and they will come” mindset is not a viable long-term strategy.

If there’s a “Back to the Future” movie about speculative valuations, we are watching it right now.

It’s a good thing many entrepreneurs today are too young to remember the first time this happened. If they did, they might be more concerned about fundamentals, and less willing to let investors position their initial public offerings (IPOs) for short-term gains.

Startups that IPO the old-fashioned way, as an initial profitable offering, will see their shares outstanding sustain what already works, rather than become gambling chips.

It’s time to honor IPO tradition, or face the consequences.

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