Questions
1 Comment on the SaaS business model of SkwizzNet. would the continuing revenue business model (software as a service SeeS model) erduce cash burn reta and make early round financing for tech startups easier to arrange?
2 Would you advise SkwizzNet to conduct their IPO by the traditional book building method or the Dutch auction method ? What are the pros and cons of this type IPO methodology?
3 the dutch auction process used to establish SkwizzNet's final offering price may result in a market phenomenon often referred to as the "winner's curse" could cause invertors to experience large future stork losses Explain.
4 It has been alleged by some that the auction process for SkwizzNet's IPO could cause a situation in which less price sensitive investors determine the final offering price by virtue of them constituting a greater portion of the investor pool. As a result, the stock's IPO price may not be able to be sustained after the stock starts trading in the secondary market. Moreover , the IPO price established the auction process may bear little, if any, connection to the IPO offering price that would result if a more traditional valuation method had boon used to establish the price. Comment on the merits fo this argument.