Renowned entrepreneur, Mark Cuban has been blaming Silicon Valley Venture Capitals (VCs) for the hardship Uber has faced in its initial Public Offering (IPO).
Whiles speaking to CNBC last week Tuesday, Cuban blamed VCs in the Valley that invested in Uber for letting it wait too long before going public.
He says this greatly contributed to the company’s unimpressive IPO which has seen the stocks plummeting.
He believes that the Uber IPO story is a reflection Silicon Valleys’ ethos in the public market.
“The whole attitude is wait, wait, wait,” he said.
Mark who was an investor in Lyft, a competitor to Uber, adds that the company will have to move faster because as it stands, it is not a growth company and has nothing exciting about it.
Uber conducted its IPO a little over a week ago with stock price which was pegged at $45 being quickly devalued after IPO – the company’s shares are now priced in the region of $40.
Before going public, Uber had conducted about 25 rounds of venture Capital fund-raising and realized almost $25 billion in the process.
Mark speaking to CNBC states that, he believes that Silicon Valley VCs are not very efficient as they do not seem to know how to value a company well, and this has been made evident in Uber’s case.