Don’t go for the banker’s money Robby.
07/02/2007
It might look like fast cash; a way to get more for the race team, but it’s always is a lot more hassle.
I was reading on Jayski’s site about the bankers looking to invest in a NASCAR teams this weekend at New Hampshire and I agree with the comments from Robert Yates. It is just not worth it. I have watched a whole bunch of start up tech companies think they were getting a boost from the attention of the bankers: looking to do an IPO. Most of the tech guys walked away with a bit of money but nothing to show after it was all said and done. There is way too much money spent on paperwork, quarterly reports, annual reports and share holder meetings. Someone is usually just looking to make a quick buck off the IPO and then they bail on you.
I am sure it’s the same suits that were so prevalent in the .COM build up and bust. The “bankers” were trying to buy up and build up anything that had a .com on the end of it. There was a huge amount of venture capitol wasted. There were some great parties I went to, but not a lot of product. I have to admit I had some fun on other people’s dimes, but in the end, the bubble burst. The .com money dried up. No million dollar offers for a company with out a viable product or business plan.
I have heard quite a few stories from the .COM folks selling out for this type of thing and ending up buying there company back a few years later. They found they were run to the ground. The products never produced and they wanted their companies back. Most of them now will never go public with a company again.
Keep the profits, keep the control: it’s a much better business plan. Please, please don’t fall for the temptation! Just don’t do it! Remember what your folks said: If it looks to good to be true, it probably is.
