Stock and Bond Markets Dethroned: Private Fundraising Is Now Dominant

Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by RussianCow on Monday April 02, 2018 @04:24PM (#16738935)

> What are some downsides I'm missing?

Maybe forcing owners to give up equity in their business just because their valuation hit some magic number? Keep in mind that not all $5B companies are Silicon Valley, VC-funded startups, and some founders still retain the majority (or in rare cases 100%) of their equity.

I also think you're over-exaggerating the benefits. None of those things seem like problems that need fixing.

[ Parent | on HN ]

Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by FeepingCreature on Monday April 02, 2018 @04:45PM (#16739106)

This wouldn't per se force owners to give up equity, it'd merely prevent them from making it available to a limited circle of investors.

[ Parent | on HN ]

Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by Anon1096 on Monday April 02, 2018 @07:21PM (#16740376)

But in doing so one or more of the equity owners would have to give up a percentage of their holdings. So yes, you would be forcing people to sell equity when they'd potentially rather hold it.

[ Parent | on HN ]

Re:Stock and Bond Markets Dethroned: Private Fundraising Is ... by ball_of_lint on Monday April 02, 2018 @09:00PM (#16740991)

This could be done without forcing anyone to sell if companies were allowed to be listed with very little volume/liquidity. Essentially those who own shares could publicly trade them, but there would be no IPO, and possibly no shares available to buy.

[ Parent | on HN ]