vendredi 19 février 2010

Fallbrook 50M$ IPO: transmission innovator

Warren Hogarth, an investor at venture capital firm Sequoia Capital, spoke Thursday at an industry event and said, "It won't do the industry any service if we put companies out that run up in the first 3 months and then collapse soon afterwards." Hogarth added that "companies are filing [for IPOs] and there is optimism for those companies, but there is also a pervasive sense of caution," concluding: "It's earnings that matter."

We repeat: "It's earnings that matter."

Which brings us to Fallbrook Technologies of San Diego, a start-up that is building an innovative transmission for vehicles and wind turbines. The company had $11.7 million in losses in the nine months through Sept. 30, 2009, and a net loss of $10.6 million in 2008, which was up from a $6.6 million net loss in 2007 and a net loss of $6.3 million in 2006.

The startup just filed for a $50 million IPO. Here's a link to the SEC filing, the S-1.

Those losses fly in the face of Hogarth's message, but are quite consistent with the recent streak of VC-based greentech IPO filings:

The only two companies on this list that are actually making profits pulled their IPOs on account of "market conditions." None of the other IPO hopefuls have turned a profit.

Source: Greentech Media, 19/02/10

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