Why It Pays to be Private
Pricegrabber.com's CEO recently testified to the merits of
not having to lie at the fate of the Street's short term expectations:
PriceGrabber.com CEO Kamran Pourzanjani says his business has an edge in this crowded market because it's privately held and doesn't rely on venture funding. While other VC-backed concerns may succumb to the pressures of investors eager to cash in, Pourzanjani believes he has more time on his side. "It has been an incredible experience in just being able to think long-term and focus on the product and user experience," he says. The Culver City (Calif.) outfit is funded entirely by angel investors.
Similarly, I tell my own clients that when they work with me, they're working with a company
owned by them. We don't cater to short term investors--our concerns are singularly with them and for the long term, as cliched as that may sound. As
Analyst Blog puts it,
Pressure from investors can be a competitive disadvantage, because it forces you to meet short-term numbers at the expense of long-term growth.
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