Zillow CEO Spencer Rascoff just went on a huge 25-tweet tweetstorm about the challenges that technology companies face ahead of their IPOs.
Tech IPOs are back on the mind of investors ahead of Alibaba’s IPO, which is expected later this month
Rascoff says that for a tech company, there are usually one or two main questions it must address ahead of its offering, and that within a couple years, these questions are usually answered for better or worse.
Since going public in back in July 2011 at $US20 per share, Zillow shares have more than sextupled in value, though the stock followed Rascoff’s model.
After just about two years as a public company, Zillow’s stock price really took off, as the company perhaps began to answer to some investor concerns. And with this experience Rascoff offers a great perspective on the challenges Alibaba is likely to face in the coming weeks, months, and years.
Here’s Rascoff’s full tweetstorm (he either deleted #3 or mis-numbered his tweets).