Perhaps, but most of those funding decisions were not made in the public markets. Those capital allocations were made by angels, VCs, and the people who commit

Perhaps, but most of those funding decisions were not made in the public markets. Those capital allocations were made by angels, VCs, and the people who committed to investing in the IPO of the company. The only thing that the overall stock market directly controls for capital allocation is secondary offerings, which are a very small part of the allocation of productive capital. The stock market just serves to trade pieces of capital that already exist. Having the stock market be a bit more accurate, particularly on short timescales, doesn't really affect capital allocation.