Investing money based off a future IPO is speculatory and is not good for the economy. Let me give an example - a lot of hollywood films are banked by people w

Investing money based off a future IPO is speculatory and is not good for the economy. Let me give an example - a lot of hollywood films are banked by people who want to get a good return on their investment. If you are an investor and you want to make money on your hollywood film, what you need to do is analyse the market, find out what the biggest consumer market likes, take a look at past hit films and create a derivate of that. If this type of movie factory turns out mediocre films with profits in the 10-20 million range, then just churn out a large number of them, and you'll make your money. This type of speculatory investment means that the money tends goes in well known technologies that offer a clear path to returns. The investors are going to minimize risk as much as possible by avoiding experiment - and in my opinion, we are at the moment when we should experiment the most. A web app does not need investment, it has a clear path towards profitability and costs can be kept very low. A robot building studio however, needs investment. A shoe discounter needs investment. When an IPO is the goal of a company, it changes the very nature of the company - and it changes it for the worse. The company has to baloon its chest out and thump on how good its doing, and to do that, it cannot afford to be seen to fail in anything. IPOs should become more difficult if anything, in my opinion.