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They could do public offerings, but that comes with a lot of legal and regulatory requirements and expenses, accounting rules, disclosure rules, etc. etc. Not a
by NickM 8y ago
They could do public offerings, but that comes with a lot of legal and regulatory requirements and expenses, accounting rules, disclosure rules, etc. etc. Not all of those things are necessarily bad; ostensibly they are there to protect public investors, but they do sometimes discourage companies from going public that might otherwise want to do so.
But sure, maybe Uber and SpaceX aren't the best examples. Not sure if I'd even necessarily invest in either of them myself, but I thought they made for relatable examples. For a more real-world case, I'd love to be able to invest some money with the solar funds run by Wunder Capital, and that seems a lot safer than crypto, but that's off-limits to people like me as well.
- tptacek 8y agoMost well-run startups do not want to sell you their shares, among other reasons because they become liable for a whole bunch of new investor relations torts once they do so. It's not just Uber or SpaceX that won't take your money; it's (I believe) most startups that ever hope to raise money institutionally later on.