LinkedIn: The Startup Ecosystem and the “Zuckerberg Effect”

No one knows what fate– or the NYSE–will have in store for LinkedIn following today’s madcap opening. But venture capitalists like Benchmark Capital’s Bill Gurley say the company’s $9 billion IPO should have one immediate effect, finally putting to rest Silicon Valley’s long-running apathy toward IPO’s, aka, “The Zuckerberg Effect.”

While much hay in investment circles has been made over “the death of the IPO” and the emergence of the M&A as the future end game for venture capitalists, Gurley doesn’t see it that way at all.

It’s true that household-name, blockbuster internet IPO’s have been on the decline since the first dot-com bubble. Meanwhile, for much of the past decade, big players like Google, Apple and Microsoft have been gobbling up companies at a ferocious pace. The market naturally came to rely on mergers and acquisitions.
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Article link, LinkedIn: The Startup Ecosystem and the “Zuckerberg Effect”