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> Newer companies like AirBNB and Uber went public at what could be their max market cap valuation of billions so investors wont' get much of a chance to make m
by Pet_Ant 3y ago
> Newer companies like AirBNB and Uber went public at what could be their max market cap valuation of billions so investors wont' get much of a chance to make money from these companies.
An argument I heard is that companies prefer to stay private longer to avoid the burden/oversight of SOX etc. The charitable interpretation is that they are too busy growing to be bothered, the less charitable is that they aren't capable of growing if they have to be accountable and forthright.
- QuarterReptile 3y agoThe availability of VC will necessarily siphon off enterprises from other funding sources.
- 1980phipsi 3y agoVC isn't a panacea and doesn't operate in a vacuum. If you raise the cost of going public and staying public, then that makes VC funding or going private more attractive. The VC funding may come with terms that are not expected by public company investors. But VC-backed companies is only one part of the private equity trend. The other part that is discussed is small owner-operated or partnership firms getting bought up by bigger ones. Here again, if the government increases regulations, then that tends to fall more strongly on small businesses than bigger businesses.
- QuarterReptile 3y agoI agree with everything you have said. I'll just add that, with the path of finding VC well-known and well-worn, we should expect greater difficulty. Even if we somehow reversed the trend of all institutions and bureaucracies to become over time larger and more cumbersome, that is, we streamlined government processes, we should expect an additional hesitation of growing enterprises to return to IPO, because VC is now a comfortable path for a significant portion of the roadmap.
- deleted 3y ago[deleted]