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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.46-3.7%3:59 PM EST

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To: Kirk © who wrote (67253)3/8/2005 4:55:56 PM
From: Lizzie Tudor  Read Replies (2) of 77400
 
First of all, startups these days have to make money. Second, if you have to take the expense hit up front, then forget it."

No, they only need to make money if they want to go PUBLIC. Once they are public, they have a much lower risk since there is a market for the shares they hold.


Come on, no investor is going to pony up VC in a venture that is not at least poised to be profitable, these days.

And as far as getting money while your startup is still bleeding red ink, fine if you want a miniscule valuation.

Expensing options for startups is catastrophic and its silly to debate otherwise. The difference is that with startups, you presumably have a reasonable board that knows how to value the company even WITH all these phantom expenses. But we don't really know that.... yet.
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