3 ms·
> what would otherwise be IPOs or other public financing rounds The NYSE and Nasdaq do a lot of hype about how much money they raise for companies in IPOs and
by Ologn 8y ago
> what would otherwise be IPOs or other public financing rounds
The NYSE and Nasdaq do a lot of hype about how much money they raise for companies in IPOs and secondary offerings. But if you look at the numbers since World War II (and even before), very little of the money corporate America raises comes from the stock market. US corporations raise money via bonds, term loans, credit lines and so on. The stock markets facilitate stocks moving from one shareholder to another, but have (relatively) little involvement in raising cash.
As you note, companies are staying private much longer nowadays. Facebook didn't go public until it was worth $100 billion.
- bobthepanda 8y agoThere are certainly benefits to staying private; no pesky shareholders to potentially overthrow you, less stringent reporting requirements and regulations, etc. Of course, the reporting requirements and regulation compliance could also be considered a feature and not a bug, but those things are generally not considered a good thing for startups.
- another-cuppa 8y agoIndeed. It's a complete joke and a big reason why "the rich get richer". I, for example, believe that artificial meat will be one of the biggest industries in the world once governments outlaw the cruel and barbaric practice of producing the "real thing". I also want to support the beginning of that industry. But is there any way for me to do that? No. The deals are done in private with a few very rich individuals. If those companies ever go public it's just a way to cash out because they are already turning a profit.