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> They clearly have data on web traffic, consumer usage, advertising spend, etc. that other VC firms and investors generally don't have access to. I mean, this

> They clearly have data on web traffic, consumer usage, advertising spend, etc. that other VC firms and investors generally don't have access to. I mean, this wouldn't be insider trading since anyone can do their own legwork to get this information. Insider information would be things that aren't (yet) disclosed to the public, not things that can be ascertained through thorough research. > Since startups aren't publicly traded, I don't think insider trading laws apply to trading their securities. Yup. Insider trading laws are designed to prevent the public from being at a disadvantage. Private firms don't need to disclose anything publicly, they can choose their investors, etc...

travisjungroth 6y ago
Insider trading laws aren’t about fairness. They’re about the misappropriation of information. Knowing things others don’t and acting on it is fine. Acting on information that you have as a responsibility to someone else, or got from someone where that’s the case is not.
a13n 6y ago
> anyone can do their own legwork to get this information Can they though? My point is that FAANG companies are uniquely positioned by having access to this data that the public couldn't possibly have access to.
- Mikeb85 6y ago
  And hedge funds are uniquely positioned by having a bunch of economists and traders working for them. The point is it's not considered insider information.
  - synaesthesisx 6y ago
    Just like how CDNs are uniquely positioned with traffic data (and payment processors have spend data), right? ;)
    - sfifs 6y ago
      Exactly right. What do you think they're doing with that data - acting as social altruists? :-) Having unique data and insights you develop is not a crime - indeed it's what you specifically want. Sourcing and acting on information from inside the company you're not authorized to have is.
- chrisseaton 6y ago
  > My point is that FAANG companies are uniquely positioned by having access to this data that the public couldn't possibly have access to. People working to build unique skills and data is normal competition and building up a competitive advantage, not 'insider trading'.

travisjungroth 6y ago

Insider trading laws aren’t about fairness. They’re about the misappropriation of information. Knowing things others don’t and acting on it is fine. Acting on information that you have as a responsibility to someone else, or got from someone where that’s the case is not.

a13n 6y ago

> anyone can do their own legwork to get this information Can they though? My point is that FAANG companies are uniquely positioned by having access to this data that the public couldn't possibly have access to.

Mikeb85 6y ago
And hedge funds are uniquely positioned by having a bunch of economists and traders working for them. The point is it's not considered insider information.
- synaesthesisx 6y ago
  Just like how CDNs are uniquely positioned with traffic data (and payment processors have spend data), right? ;)
  - sfifs 6y ago
    Exactly right. What do you think they're doing with that data - acting as social altruists? :-) Having unique data and insights you develop is not a crime - indeed it's what you specifically want. Sourcing and acting on information from inside the company you're not authorized to have is.
chrisseaton 6y ago
> My point is that FAANG companies are uniquely positioned by having access to this data that the public couldn't possibly have access to. People working to build unique skills and data is normal competition and building up a competitive advantage, not 'insider trading'.