18th October 2010: Web 2.0 IPO Watchers

Dow Jones reporters Tom Io Geron and Scott Austin note a new trend: managers raising funds for the IPOs of Web 2.0 properties such as Facebook and Twitter.

Their watchlist? JP Turner & Co; technology investor Felix Investments LLC; and Chris Sacco’s Lowercase Capital. Critics? Acquisition and valuation lawyers.

Geron and Austin have two ‘takeaway’ points: (1) managers raising funds is a ‘weak signal’ for possible IPOs; and (2) how others evaluate the fund-raisers and pitch-books can be an invaluable ‘reality check’.