Nutanix goes cap in hand to Goldman Sachs for $75m loan Hyper-converged startup and IPO wannabe Nutanix finds itself in hock for $75m to Goldman Sachs after it was forced to take out a loan because its fund-raising IPO was delayed. An amendment to its S1 SEC filing says that Nutanix has borrowed $75m from Goldman Sachs, its IPO advisor: “ In April 2016, we issued an aggregate …
Their glory days are long gone. The facts of this article equates to several more nails in their coffin. That coffin will be sealed shut within 7 months. The other 'nails' are losing Dell as a reseller (Dell is now selling the hell out of VxRail) , which accounted for over 40% of their revenue; and increased competition. For a few years, Nutanix was the only HCI vendor around. Not so today. Sure wouldn't want to be a CIO looking to buy a soon-to-be boat anchor! RIP.
The day of reckoning has come. This is bad for the IPO and ultimately bad for Nutanix employees.
First, that $75 million is a liability now and will be a cash flow hit when it is paid off. Loans like this have a double impact of a loss. When and if an IPO happens, this will be an additional paper loss that will have an immediate impact on the stock price.
Second, Nutanix employees continue to get screwed but they probably don't realize just how bad. While this loan is better than diluting the stock for cash infusion, it's essentially taking even more losses now which won't be financially appreciated until post IPO. Instead of diluting stock they have borrowed against future gains. This will help keep the IPO price depressed. You can bet they are selling this internally as a good move while the CEO continues to pad his stock options. Employees are stuck, too invested to leave and a much lower outlook on their own stock options.
Isn't that how 95% of pre-IPO companies go? The company is created so the couple of founders get immense wealth, while promising the stars and the moon to the rank and file employees. Look at Nimble, down 85% to single digits and more losses. No employees are making money there. And can't miss PURE.....has tanked as well, and is now under SEC investigation. WOW
Ain't nobody but 3 or 4 C-levels going to get cash out of Notanix. Cut bait now!!
So much negativity towards a company with a good product; in fact any press release on el reg about any 'younger' companies is met with a hoard of 'Anonymous Cowards' unleashing a mix of lies and general vomit.
Time for another 'unshowing' of the AC's!
Yeah it's a hard time due to the current market, VC's being less generous and higer competition....but i've never seen such a high concentration of people wishing other companies to implode and fail.
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