4 ms·
I don’t think this changes whether a company decides to go public or not. This mostly helps “hot” private companies, mostly in tech, go public in a way that giv
by tempsy 6y ago
I don’t think this changes whether a company decides to go public or not. This mostly helps “hot” private companies, mostly in tech, go public in a way that gives shareholders a chance to sell more shares on Day 1 and prevent bankers and investment banking clients from locking in an immediate return from a pop due to a mispricing at a price that is not available to other public investors.
- ac2u 6y agoDoesn't it effect when startups choose to IPO though? The first thesis of this article yesterday (https://news.ycombinator.com/item?id=25493646 https://news.ycombinator.com/item?id=25493646) put forward that because startups were missing out in the initial pop after IPO, it pushed the average tech IPO to be years later than before in order to try and capture more value privately. This is at a determent to early employees with options (that then leave) as they have to make investments both in exercising options and the tax liabilities while waiting much much longer for liquidity via an IPO.
- tempsy 6y agoI don’t see why delaying an IPO until you “capture more value privately” somehow minimizes the pop. Obviously that didn’t happen with Airbnb or DoorDash which were both pretty late stage at this point. Don’t think it has anything to do with that.