Uber plans to raise another $ 1 billion - experts advise companies to go for IPO

    In the summer, Uber announced its intention to raise $ 1 billion for development in China. After completing the round, the startup’s valuation exceeded $ 50 billion. However, the company intends to raise another $ 1 billion. If the round is successful, the Uber valuation could skyrocket to $ 70 billion. With this assessment, Uber will increase its lead over the competition for the title of the most expensive private company in the world.

    It is noteworthy that in 2011 Facebook was estimated at about the same amount. And in 2012, the company entered an IPO. But does Uber want a public offering?

    The new round of financing will be the eighth in a row over the last five years of the company's existence. Uber management plans to negotiate with investors in the next few weeks.

    Some experts believe that the company is ready for a public offering. However, Uber founder and CEO Travis Kalanik believes that companies are too early to go public, says Business Insider, citing the New York Times. Despite the high achievements, Uber is still in the status of "junior".

    In addition, given the unstable situation on the exchanges, an IPO for the company is a bold but risky step. As practice has shown, in such periods, many startups with an estimate of more than $ 1 billion do not dare to switch to public status. According to Dealogic, since the beginning of this year, only 19 companies in the United States have conducted IPOs.

    Uber's first investor, venture capitalist Bill Gurley believesthat investing in technology companies requires great care. After several years of very rapid growth of many startups, both the volume of investments and the expenses of such companies growing, they still do not have a clear way to make a profit.

    No matter how much a private company is valued, investors cannot get an investment until a startup goes public. The liquidity of the company can serve as the only real estimate of any startup, says Gurli, and all private assessments are just numbers on paper.

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