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Larry Cheng, Volition Capital managing partner, on Facebook’s IPO and what will be the next big brand to make its public debut.
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-- -- -- after Facebook's next yeah IPO in -- losing nearly 70% of its value is seven months after going public.
Well investors still have an appetite for tech IPOs joining us now Larry King militia -- on managing partner.
And a venture capitalists who you know what's going on out there it's -- trading erratic time for sure there's a lot of companies coming to market -- Are you excited about them.
The companies that are coming to market -- some of the best companies that the venture capital industry is investing in the last 67 years the question is how much -- -- work right.
That's a big problem -- we see these valuations.
Ever going gets on the bandwagon and then it just perhaps what happens we can't blame for going public that they're raising capital and really high prices the problem is.
That they're being priced for perfection if one thing goes wrong in this one number and they get or guidance going forward.
That's the stuff that's -- crest we just put up a bunch of them that have gone public linked -- group bond and and there are all down.
Welding and the only -- -- -- probably not down five in the fiance though unfortunately -- -- -- pandora's down yes they're all down and these are zinc is down -- and of course FaceBook all down the commonality between these companies as besides FaceBook and Linkedin goes the other ones are not I don't profitable.
The question is how do you price growth when it doesn't come with profits and that's what the public markets are wrestling but it's more about -- the ADD generation isn't it because anytime you put something out I'm totally into for a -- and that got.
That is true it's it's either priced that way too high -- any -- biggest case it might be priced too -- now.
So what it.
Do you get in companies IPOs or do you just stay with -- -- -- into the institutional guys I think if you wanna get involved in an IPO you can wait because every single company that's going public has a bit locked up on lots of cheers from venture capitalists like myself.
-- has a lock up coming on and and August and November.
Let that -- the -- and then you can evaluate -- -- OK so what's the next big thing in the tech world coming out.
Well there's a bunch of cloud computing companies and so you have a company like -- club which is kinda like Salesforce.com.
But for marketers.
And so manages all of your marketing programs in the cloud.
That's gonna go on early August I think there's three of four companies in that space that are going to be real businesses that crap company for the cloud computing makes more sense to me it seems like a more stable business to go.
With the game company.
And I know my kids after a week they could care less.
Gaming is so erratic -- -- hits driven business it's very hard but the cloud computing companies are completely different they have a strong customer base and recurring revenue the customers stick with sound.
That's why salesforce is still trading at seventeen billion dollars should you blame the bankers Thomas.
The bankers have a job they're trying to get that the company -- for the highest price possible so ultimately have to blame investors we're just kind of by the stop.
Ultimately though -- excited about what's coming absolutely.
Course you are you.
Listen capital -- that they.
