Silicon Valley Entrepreneurs Celebrate LinkedIn's Wild IPO
Professor Joseph Grundfest spoke with Patrick May of the San Jose Mercury News about the differences between the newest breed of companies in Silicon Valley today and the ones in the 1990's.
LinkedIn's phenomenal curtain raiser Thursday seemed as much a religious revival as an IPO as entrepreneurs, investors and analysts took it as a sign that Silicon Valley is headed for heavenly heights.
The consensus is clear and in some cases cautionary: LinkedIn's stock-price jump of more than 100 percent right out of the gate will mean more VC money chasing startups, more entrepreneurs bucking to take their companies public, more investors jumping into the secondary market for pre-IPO darlings like Facebook, and possibly a few belly-flops by wannabes not yet ready for prime time.
"The breed of companies coming to market today in Silicon Valley is very different than the ones in the late '90s," said Joseph Grundfest, professor of law and business at Stanford Law School. "The new generation of Internet companies are much more like Google (GOOG) and much less like Pets.com."