Zynga Doesn’t Need An IPO … And Brad Feld Doesn’t Follow The News

Companies like Zynga, Facebook, LinkedIn and Twitter don’t need to go IPO, says Brad Feld, managing director of the Foundry Group.

Feld, who was speaking Tuesday at the Quebec City Conference, says the overhead of being a public company is high, while the overhead of being private is low.

“There’s not a need for liquidity [at] these great companies,” he says.

Foundry currently owns a stake of Zynga but Feld declined to comment on any IPO plans. “There are no discussions on a Zynga IPO,” he told me on the sidelines of the event. He would not say how much Foundry, a Boulder, Colo.-based VC firm owns in social gaming company Zynga.

Recently, such companies as Zynga and Facebook have instituted fees on secondary sales of their stock on SeconMarket and other exchanges. Feld says that he supports such a measure because “Zynga does.”

Apart from the Zynga comment, Feld also commented on the potential life span of Foundry.

“We’re not building a long-term firm,” he says.

In 2007, Foundry raised a $225 million fund. The VC firm earlier this month announced it had closed a second fund at the same size. Foundry will likely raise a third and possibly a fourth fund but “then we’re done,” Feld says.

Feld, during a Q&A, spoke extensively about entrepreneurs and the role of VCs, but he says he pays no attention to macro economics. “I stopped watching the news a decade ago,” he said. “What happens in real time has no impact on me.”

However, he does follow tech news and tech bloggers in real time. He reads four magazines in paper form: Forbes, Fortune, Businessweek and the Economist. But even those he goes through a month later in the bathroom. “What goes on in China, what happens in the stock market…it’s irrelevant to my world,” he says.