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Dead capital. There's no need for public funding until they are reasy to cash out at the top, if ever.
by charlie0 4mo ago
Dead capital. There's no need for public funding until they are reasy to cash out at the top, if ever.
- solenoid0937 4mo agoHow do investors cash out? Do they sell to new round investors?
- bix6 4mo agoCorrect. There is also a secondary market.
- barbarr 4mo agoGoing off the other reply, I wonder if a highly-active secondary market means that companies can raise series [A-Z]+ rounds effectively forever, where each "round" just refers to a giant purchase of shares under strict company supervision. Is this the new game for startups?
- DenisM 4mo agoIf investor pool becomes too loose the company becomes de facto public, subject to all SEC-enforced regulations. The judgment is subjective though, so pushing the boundaries could be a calculated risk.
- epolanski 4mo ago> There's no need for public funding You're assuming private liquidity to be infinite and private credit (that fuels VCs) to always have favorable rates.
- charlie0 4mo agoWhen you have companies like SpaceX and Anthropic raising billions, it is hard to believe that private credit isn't virtually infinite.