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One dangerous part I think investors have forgotten in this whole going-away-from-public-markets financing craze is that companies can now hold investors hostag
by noway421 8y ago
One dangerous part I think investors have forgotten in this whole going-away-from-public-markets financing craze is that companies can now hold investors hostage. It's now all or nothing play in which the investors need to pour more and more money in the subsequent rounds in order to justify the ramp up cost which gets you to the heavenly break even somewhere in next five years. There's no longer an option to get out. IPO on 100b valuation or bust.
Public companies would never have luxury to take such gambles, their stock would crash. (but from the other point of view, tesla is somehow still doing it)
- mlthoughts2018 8y agoPerhaps often by design? Maybe sitting rows of expensive engineers in opulent exposed brick open plan offices like they are office furniture is like creating a venus fly trap for investors? It would partly explain why engineering productivity is paid such little attention.