This week we took a behind-the-scenes look at IPOs, and how companies try to get banks to become clients in order to win the account. Kevin Dugan and Priya explained the story of ZScaler, which tried to get a collection of customers in the banking syndicate that underwrites the IPO. It’s not an uncommon occurrence these days. And it raises questions about how the public can fairly judge a company’s business if their revenue is boosted by one-time customers trying to get in on the IPO riches.
Then Kate explores Lambda School, a coding academy that gets tuition by getting a percentage of a student's future income. It’s a controversial practice that some former students have complained about. Some say the school’s curriculum isn’t well managed. Others say the percentage of income that the school exact—17%—is onerous. Especially if you’re only making $50,000 a year.