2 ms·
Also remember that "normal" stock markets are secondary markets, buying a stock doesn't actually provide capital to the startup (unless it's the IPO).
by rcwhite 18y ago
Also remember that "normal" stock markets are secondary markets, buying a stock doesn't actually provide capital to the startup (unless it's the IPO).
- jrockway 18y agoGood point, but it could still be helpful. If you are a VC, it is probably nice to know you can inject some cash into a company and if the company starts going downhill, you can easily sell your shares to someone else. At the same time, Joe Average might be able to pick up some "deals" on startups that VCs think will fail but he thinks will do fine. The market is not a bad idea.