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FTA: The public markets have failed to solve this problem so it's going to get solved in some other way. The public 'markets' haven't failed to solve this prob
by tc 18y ago
FTA: The public markets have failed to solve this problem so it's going to get solved in some other way.
The public 'markets' haven't failed to solve this problem so much as the government regulations that surround being public, such as Sarbanes-Oxley, have made it impractical for smaller (< $1B) companies to go or stay public in the US. It's impossible for a company doing $100M in revenues to justify a $5M fixed annual cost for SOX compliance, which doesn't even begin to take into account the compliance costs of other general and industry-specific regulations.
- olefoo 18y agoI'm trying to imagine what good solutions to this problem would look like. Under the current paradigm, you could have a large public company that served as a holding company taking stakes in a large number of small ventures based on some sort of vote or 'internal market of shareholders'. Another model that could be brought forth with the current legal framework is for the government to provide a set of validated reporting apis, and accounting models that anyone would be free to use, and which so long as you didn't deviate from them would let you comply easily and cheaply.