Mashable Muses While Tinder CEO Sean Rad Confuses: The Match Group IPO
November 18, 2015
Sean Rad is the CEO of Tinder for one very simple reason: he’s easily manipulated by investors or he’s a CE(N)O. Companies like The Match Group or Venture Capital firms purposely hire underqualified CEOs who are easily manipulated & desperate to keep their job and status as CEO, who are then willing to engage in unethical and or illegal behavior on behalf of the company to quickly prove they can achieve ROI for investors.
Tinder’s CEO Sean Rad’s latest baffling behavior has Mashable’s Seth Fiegerman comically muses about why companies are quiet before IPO’s.
On the eve of his parent company’s public offering, Tinder CEO and cofounder Sean Rad gave a baffling and embarrassing interview to The Evening Standard, in which he muses about doing “background research” to discredit a journalist who wrote an unflattering story of the app and eagerly boasts about turning down the advances of a “really famous” supermodel.
The truly awkward moment comes when Rad tries and fails to explain his attraction to women who are “intellectual” rather than beautiful.
Fiegerman warns not to read the rest of his piece if you cringe easily, but if you read here often, you’ve either lived through your own (startup) sexism stories or vicariously through mine at this point, so head over (ahem-after reading this) for a good laugh.
SEC POTENTIAL WARNING FOR IPO FRAUD
Both The Match Group ($MTCH) and Square ($SQ) are set to IPO tomorrow and if the SEC is paying attention they’ll not allow investors to pull out immediately until they’re able to show sustainable growth over two years. If both companies IPO then watch for massive layoffs in both companies in the next six to 12 months. As this business model, likely built on false projections, cannot sustain sales and employees will unfairly be blamed for mismanagement from the top. Initial investors will pull out all their money as soon as possible leaving long-term investors/shareholders with worthless stock.
Unethical startups almost always engage in company-wide sexism, where it’s applauded, encouraged, replicated and rewarded while the victims are ignored, retaliated against then terminated, which is always a trigger for far greater fraud within the companies. A very common fraud we’ll see much more of in tech (it’s finally catching up to its little sister medtech) are false sales projections which lead to hypergrowth and fraudulent overvaluation of the company.
We’ve seen a similar pattern recently with CEO Jack Dorsey’s Square falling $2 billion short in valuation for their IPO, and we’ll see this again with CEO Travis Kalanick of Uber, who now claims his company is too young to IPO (way to spin it Travis). The false projections which lead to the appearance of hypergrowth can’t IPO and still make money for investors, so they file the IPO (pull it six months later stating “unfavorable market conditions”) where their only option is to sell the company. Initial investors make their money + back, but long-term investors/shareholders just purchased a fraud and will lose money.
Startup tech is following a very similar pattern to the industry’s little sister, medtech, when it comes to fraud. Reference: NEA Funded ExploraMed Incubated startup Acclarent that was acquired by Johnson & Johnson for $785 million in 2010 to see the pattern.
By the time shareholders start to understand the fraud, and when the U.S. Department of Justice & SEC starts to investigate, the Group or VC’s go unnoticed because they have an easily manipulated, underqualified CEOs to take the fall for them while they start the fraud cycle all over again with a new startup all at taxpayer expense. #TheSociopathicBusinessModel
Not until we take the billion dollar blinders off of startup #GodsOfFrauds, where unethical & illegal behavior is entrenched in the business model, will we see the likes of the Sean Rads of the world disappear from the CEO landscape, where investors are forced accountable by the shareholders. Fiegerman cleverly states in his Mashable piece that Rad was installed as Tinder’s CEO briefly uninstalled then recently reinstalled pre-IPO, hopefully, this explains why Rad is CEO and also why no one (least of all Rad) should be surprised when he’s permanently uninstalled in the very near future, for his sake let’s hope he fares better than these guys from NEA funded ExploraMed incubated startup Acclarent which sold to Johnson & Johnson for $785 million in 2010.