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Revisiting the IPO Boom

Motley Fool Money

Pre Revenue Companies - Is That a Bad Idea?

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There's an old adage, there's not a bad idea when cash is plentiful. And think that with intestrates being low, with a growth on mine set, we saw a lot of more out there ideas come public earlier than maybe they would of five years ago or ten years ago. Pre revenue companies are often making zero dollars during the research and development process. That makes valuing those companies very, very, very tricky because al you can't lcate earnings if those earnings are so reliant on a factor that's outside of management's control.

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