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The only "last ones in" will be the retail investor when they eventually go IPO. That's always been the case, just like with GroupOn, Zynga, etc. The VCs and
by steven2012 11y ago
The only "last ones in" will be the retail investor when they eventually go IPO. That's always been the case, just like with GroupOn, Zynga, etc. The VCs and IBs will hype up the company, and then they get their mutual fund buddies with huge piles of cash to pay up for the IPO in exchange for early access to the next awesome company, and these crappy companies get unloaded to the retail suckers.
That's how the industry works, but no one seems to care, because there are no consequences, and the incentives are such that no one cares if the retail investors lose a bit of money, and VCs and IBs get massively wealthy.
- ChuckMcM 11y agoExcept that the future of Unicorns is not an IPO, its being sold to BigCo for a fraction of their Valuation which pays off some of the investors but fails to trickle down to the common stock. Or like with companies like SilverSpring there is a massive reverse split to get the the number of Common Stock shares down to a number that represents what the current market might pay leaving employees with pre-IPO stock options where the strike price is above the IPO price. How is that not a ponzi scheme?
- steven2012 11y agoReverse split happened to Hortonworks as well. Lots of employees got completely screwed by this because the sheer number of their options were cut in half.