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They don’t want to go public because they have insane valuations yet aren’t profitable. Going public would mean losing a significant amount of paper wealth. The
by fbonetti 9y ago
They don’t want to go public because they have insane valuations yet aren’t profitable. Going public would mean losing a significant amount of paper wealth. The stock market doesn’t value “world changing technology” (flimsy startups) as highly as investors in Silicon Valley.
- draw_down 9y agoNo, that isn't why.
- varjag 9y agoThe uncomfortable on point answer buried in the discussion. VCs learned their dotcom bust lesson well. The cycle can drag much longer if you don't go public. The exit target now is a sale to an existing public buyer, skipping the market validation stage altogether.