I partly agree with your argument, specially on the liquidity side. Having said that, Venture Capital is one of the riskiest investments, and they wan't to make

I partly agree with your argument, specially on the liquidity side. Having said that, Venture Capital is one of the riskiest investments, and they wan't to make outside investors feel as if these companies are Treasury Bonds. VCs should be less selfish and admit that raising Series A, B or C does not validate a business and it's ability to become a great company. An it specially does not validate ridiculous valuations in the Stock Market. Just watch Jeff Clavier's interview in Blooomberg, it's simply embarrassing: http://www.bloomberg.com/video/74892006/ http://www.bloomberg.com/video/74892006/ IPO investors should sue any pre-IPO investor going on national TV arguing how great their investment is, and later dumping the stock. Just listen Jeff's argument and count the number of "if". He is just making a bunch of excuses of why Groupon is great, all conditional to god know what kind of number of hypothetical events. This is acts are dangerous, selfish and immature, as they damage the Startups' image to society.