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> What are some downsides I'm missing? Maybe forcing owners to give up equity in their business just because their valuation hit some magic number? Keep in min
by RussianCow 9y ago
> What are some downsides I'm missing?
Maybe forcing owners to give up equity in their business just because their valuation hit some magic number? Keep in mind that not all $5B companies are Silicon Valley, VC-funded startups, and some founders still retain the majority (or in rare cases 100%) of their equity.
I also think you're over-exaggerating the benefits. None of those things seem like problems that need fixing.
- FeepingCreature 9y agoThis wouldn't per se force owners to give up equity, it'd merely prevent them from making it available to a limited circle of investors.
- Anon1096 9y agoBut in doing so one or more of the equity owners would have to give up a percentage of their holdings. So yes, you would be forcing people to sell equity when they'd potentially rather hold it.
- ball_of_lint 9y agoThis could be done without forcing anyone to sell if companies were allowed to be listed with very little volume/liquidity. Essentially those who own shares could publicly trade them, but there would be no IPO, and possibly no shares available to buy.