[Ryan Shiroky]

This is exactly what I was aiming at...

I feel like we'll see a lot of serious old school corporate raiding down the line... Imagine the day On Deck goes public, its going to be mayhem on Wall Street. I feel like it will destroy the company being that everyone in the arena is going to want a piece of that pie and some of the big guys are not going to "Buy it lightly on the way up..." (-Sir Larry Wildman) they are going to gobble the company up...

Some will laugh, some will cry, some will go home empty handed, some will be left holding the bag... We'll see...

[Chambo]

This is exactly what I was aiming at...

I feel like we'll see a lot of serious old school corporate raiding down the line... Imagine the day On Deck goes public, its going to be mayhem on Wall Street. I feel like it will destroy the company being that everyone in the arena is going to want a piece of that pie and some of the big guys are not going to "Buy it lightly on the way up..." (-Sir Larry Wildman) they are going to gobble the company up...

Some will laugh, some will cry, some will go home empty handed, some will be left holding the bag... We'll see...

Going public would be the single WORST thing On Deck would/could do. No more BS and smoke, they would have to produce their numbers every quarter and answer to shareholder scrutiny.

[Ryan Shiroky]

Going public would be the single WORST thing On Deck would/could do. No more BS and smoke, they would have to produce their numbers every quarter and answer to shareholder scrutiny.

But if they were swallowed whole by a small group of some other big names then they would be operating on a whole other level, management would be switched up and there would be a mass execution of staff... So who knows what would happen really. But I do fully agree it would destroy the company because it would either be cannibalized by other funders or crumble from within (this is all speculation and simply my opinion, and wtf do i know, im just a sales guy...)

[Chambo]

But if they were swallowed whole by a small group of some other big names then they would be operating on a whole other level, management would be switched up and there would be a mass execution of staff... So who knows what would happen really. But I do fully agree it would destroy the company because it would either be cannibalized by other funders or crumble from within (this is all speculation and simply my opinion, and wtf do i know, im just a sales guy...)

On Deck has been fantasizing about this since inception in 2006.

[Ryan Shiroky]

On Deck has been fantasizing about this since inception in 2006.

Indeed. The day they are profitable they are going to start pushing that IPO. And as you said, its going to be the single worst thing they have ever done/desired.

What I don't understand... they are #2 in the space, HOW THE HELL are they NOT PROFITABLE?!?!?!? I don't see overhead as being a good excuse...

[jbrown]

Indeed. The day they are profitable they are going to start pushing that IPO. And as you said, its going to be the single worst thing they have ever done/desired.

What I don't understand... they are #2 in the space, HOW THE HELL are they NOT PROFITABLE?!?!?!? I don't see overhead as being a good excuse...

Easy. Keep raising capital from VC firms and selling a high growth story. Grow insanely now, profits come later. Until they don't and/or you can't continue to raise money. Then the wheels come off the bus (and the merchants go round and round...)

[Ryan Shiroky]

Easy. Keep raising capital from VC firms and selling a high growth story. Grow insanely now, profits come later. Until they don't and/or you can't continue to raise money. Then the wheels come off the bus (and the merchants go round and round...)

So, they are making VC firms ooohhhh and ahhhh while having their pockets turned out??? Wouldn't a VC (at some point in the meeting) ask "ok the growth is nice, but where is the ROI????"

[Gini Co]

Indeed. The day they are profitable they are going to start pushing that IPO. And as you said, its going to be the single worst thing they have ever done/desired.

What I don't understand... they are #2 in the space, HOW THE HELL are they NOT PROFITABLE?!?!?!? I don't see overhead as being a good excuse...

My guess is that they are not profitable on a GAAP basis due to the accounting standards for Revenue Recognition and Loan Loss Reserves...This leads to little to no profit in high growth periods (i.e. their entire existence as a company.) I'm sure they're making positive returns in excess of cost of capital and overhead on their portfolio. Investors will be just fine.