(You may refer to Snap’s S-1 filing here)

To say that I am not a big fan of Snap’s IPO would be an understatement – I would not touch Snap’s IPO even with a ten foot pole. Here are the 2 biggest reasons:

1) No voting rights

Source: Snap’s S-1 filing

Snap has 3 classes of common stock, and are offering only class A – those without any voting rights. What this essentially means is that investors will have no say in the governance of the firm at all (and hence, negligible influence on management).

The point is this: while Spiegel and Murphy appear to be almost omnipotent now, things may change in the future. Should things take a turn for the worse, investors will simply have to suck it up and accept whatever Spiegel and/or Murphy dictate as they have zero say in governance.

Those who are …