An Early Twitter Investor's View of the IPO Process

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Sept. 13 (Bloomberg) -- Bill Tai, a partner at Charles River Ventures, discusses the timing of Twitter's IPO filing with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

We are lucky to have bill join us.

You were one of the earliest investors in twitter.

My partner george zachary should have all the credit of that.

That 250,000 dollars get you what, one percent?

At the time, it bought around one percent of the company.

I know you don't want to talk about it, but you have been around a number of companies is a venture investor.

Also, you are a wall street analyst.

What happens at a company?

At twitter, people are watching a broadcast right now.

I was at a company that went public in 1999. it was a very disparate dividend.

What is it like inside a company -- disruptive event.

What is it like inside a company that is going public?

Wax lots of anticipation.

People get focused on what might happen.

You go public when you can because there are market openings.

You go public when you can.

You hope that you are ready.

When you're out there, your employees will watch that stock.

One of the worst distractions during nida -- what are the worst distractions during an ipo process?

The process is pretty isolated from employees.

Underwriters handle that for them.

The management is often a way.

What about that nose to the grindstone discussion that people -- my experience is that people work a lot harder into the process of going public.

They focus on the company and feel special.

Once the company is listed, they are working hard.

Back east, there is a belief that people in silicon valley go shopping for a maserati after filing for an ipo.

Absolutely not.

Their identities are tied to their companies.

They want to see it do well.

Let's talk about the jobs act.

Is there a time in which it is wrong for a company to go public?

You go public when you can but you hope that you are ready.

The best situation is when you have very clear earnings disabilities -- visibility and you know you're going to hit that quarter.

Is in that leading an analyst by the nose?

You are an analyst.

Is that just about communication or is it about a business that is not volatile?

Both of those.

An important part of it is asked -- setting expectations right.

If you don't have that perfect match, you have to do a great job hitting the numbers and making sure the expectations are set low.

What is it that you think this company has been able to achieve in terms of solving problems technologically?

I think more than a technical solution, twitter is just a part of everyday life, a social phenomena that is important to people's everyday lives.

In terms of other investments -- there are certain companies that recently created a world of companies around it.

Do you see twitter having that thing kind of effect?

Social communications in general has been a trend for the last couple of years.

It is going to continue.

I think with the movement in the cloud and mobile being a big part of technology, it is a lot easier to develop things that have a good user interface.

Years passed, 10 years ago, 15 years ago, to build a company like this, you had to build your own data centers.

You couldn't just plug into amazon and get something up and running.

These guys have done some of that.

Really interesting startups growing like a weed.

Do you look for these things?

Absolutely.

That is the other change in venture these days.

In years past, a lot of it was around technology.

Technology wasn't right in your face.

Now you can test the products and see if you like them.

If they are applicable, and you find a good use base for them, you might find them.

Do you think that is all of technology?

Is happening in enterprise too.

The cost of putting together a startup has gone way down because of the cloud and because mobile has dropped the cost of distribution.

It is a lot easier for small teams to build a product and get a company going.

Interesting stuff.

Thank you very much.

Thank you.

This text has been automatically generated. It may not be 100% accurate.

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