Initial Public Offerings Are ‘Not Worth It’, Says Billionaire Investor Tim Draper

Billionaire investor Tim Draper welcomes miscellany in terms of funding crypto-related ventures. On 6th July, Draper joined the Unitize conference to talk about investing in primary stage blockchain companies.

During the Unitize panel, Draper emphasized that prevailing regulations make it problematic for blockchain based companies to go public. He commented,

“I don’t recommend going public to anybody right now unless your company is worth at least $10 billion”

Draper further mentioned:

“The regulators made it so expensive to go public that it’s really not worth it […] The largest investments are coming from those large funds, and that tends to be an easier way to get your money than trying to go public.”

As per Draper, the Initial Public Offering process used to be considerably inexpensive during the initial years. According to him, businesses used to go public when they were valued at around fifty million USD or above and only twenty million USD in revenues. Draper said, “(today it’s not) even worth it until you have a $5 billion market cap.”

Draper is also a serial protagonist of the largest digital asset by market cap, Bitcoin. One of the prime Bitcoin bulls of all time, the prominent investor is of the stance that BTC prices will cross two hundred and fifty thousand USD by 2023.