Year Ended December 31,
2011 2010 2009
Cash generated from (used in):
Operating activities $ (67,321 ) $ (9,870 ) $ (3,277 )
Investing activities (80,845 ) (23,734 ) (20,911 )
Financing activities 209,037 32,186 28,016
Effect of exchange rate fluctuations (2,460 ) (883 ) 1,506
Increase (decrease) in cash and cash equivalents $ 58,411 $ (2,301 ) $ 5,334
Operating Activities. Net cash used in operating activities for 2011 was $67.3 million , compared to $9.9 million for 2010 . The increase in cash used in operating activities is attributable to higher prepaid third-party costs, both organically and related to our acquisition of MIG. In addition, much of our business is in emerging markets where payment terms on amounts due to us may be longer than on our contracts with customers in other markets
Investing Activities. Net cash used in investing activities for 2011 was $80.8 million compared to $23.7 million for 2010 . This was primarily due to our investment in property and equipment, software development, which we capitalized, and investment in subsidiaries, including the acquisition of Mobile Interactive Group and Air2Web during 2011.
Financing Activities. Net cash generated from financing activities for 2011 was $209.0 million compared to $32.2 million for 2010 . The cash generated from financing activities was primarily due to the proceeds from our public offerings completed during 2011, offset by the repayment of a significant amount of the debt outstanding as of December 31, 2010.
Would I be right in thinking that the only reason why this company is cash flow positive is because of the proceeds from the IPO? And without the IPO proceeds the company would be cash flow negative? Should this be a worry for me or am I reading too much into it? I'm thinking that it's extremely important for a company to be cash flow positive, especially from Operating activities, right?