PrivCo is often knocked by people in startup community for being overly harsh on startups, but in this case he Hamadeh makes some fair points. Box's only realistic option is to sell the company." He says, " Box was not and is not ready for prime time for the IPO market, and it would have difficulty surviving in the wilderness of the public markets. Sam Hamadeh, CEO of PrivCo, a company that analyzes private companies has a harsh assessment of Box. In March, an analysis of Box's business showed that it was burning twice as much cash as any comparable public company. That's not to say, with only about a 4% vested stake, Levie couldn't be pushed around by his board, particularly if the company's need for cash puts its back against a wall. Those that know Levie say it was a growing-up moment for him. Instead, they appear to be a bit of freelancers by underwriters in search of optionality.īox co-founder and CEO Aaron Levie has stood down his board before when they wanted to sell. That turned out to be true, but it may not have been a serious shop around.įortune has learned from multiple sources that bankers - including at least one listed on Box's IPO registration - have put out feelers to large tech companies about Box, but that those calls were not authorized by Box's board of directors. News about trouble with Box's IPO has been floating around on Secret, the anonymous app where people in the tech industry like to gossip.Īccording to some posts on Secret, Box was looking to sell. It often indicates a user profile.īox's IPO has reportedly been pushed back after the recent cool-down for tech stocks. Account icon An icon in the shape of a person's head and shoulders.
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