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Isn’t that just a long-winded way of saying that early investors, who take on more risk, earn superior returns? As for the barriers to the general public inves

• mistermann 9y ago
  Not really, with initial and intermediate funding now being covered by deep pocketed VC's, the public no longer has the chance to invest in earlier stages of the development cycle. Regardless of whether this is good or bad, it is different.
  • rhlsthm 9y ago
    This isn't really true. If you actually wanted to and tried to put in early stage money, you could. Lots of startups raise their first few hundred K from "friends and family" type rounds and are usually readily looking for small investors to write small (25k or even less) checks. I would bet within a couple degrees of separation within your network you can find someone raising money for a project you're at least somewhat interested in. There are also platforms like AngelList that are making it easier to fund deals with small money.
    • lovich 9y ago
      How many of those people get pushed out by later VC money because they want to clear up the cap table?
    • mistermann 9y ago
      It's not true that it's different? How might an individual know about and do some baseline reasonable due diligence on these opportunities as identically easily as he could with a publicly listed stock? And why do VC's bother going through all the work, if the outcome is no different than if they'd simply have left things be as they were, with these companies getting funding from the public markets?