The Long Term Stock Exchange
Ready to go public yet? You ain’t? You built a business around that product you love and want to keep control of its destiny? You don’t want shareholder value to be the ultimate metric?
Eric Ries, author and guru of the Lean Startup movement has your back. This guy dreams big. And he dreamt a while back of a stock exchange where long-term thinking and strategy got rewarded, over short-term results.
“We are building a market where companies are rewarded for choosing to innovate, to invest in their employees, and to seed future growth,” LTSE CEO Eric Ries said in a statement.
Nice idea, huh? Well, that was met with a lot of scepticism (as you can imagine). But Ries surrounded himself with other Silicon Valley dreamers (Marc Andreessen, Tim O’Reilly and Peter Thiel to only name a few) and finally has that LTSE project off the ground with the Securities and Exchange Commission giving its go-ahead.
How does it work? Essentially, it rewards shareholders who are in it for the long ride. The longer you own shares, the more voting rights are associated to it. Meaning that your product/business strategy won’t be highjacked by speculating sharks, but by investors that feel your long-term vision and understand how that can grown and eventually make them a profit.
Be honest, the idea of launching your own IPO now sounds a little more enticing than just a few minutes earlier, right?
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