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A comment on Postmates’ new IPO delay indicates Wall Street is turning against Silicon Valley. Parent comment

Re:Postmates’ new IPO delay indicates Wall Street is turning... by dvt on Tuesday October 08, 2019 @09:29PM (#21199104)
> This means that the company will either need to keep raising money to buy out earlier investors ...

Isn't this the literal definition of a Ponzi scheme? Isn't using new money to pay old investors technically illegal?

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Re:Postmates’ new IPO delay indicates Wall Street is turning... by jrumbut on Tuesday October 08, 2019 @09:50PM (#21199210)
In a Ponzi scheme there isn't an actual business occurring, or only the facade of one. If they make money, they can stop raising from investors.

The line can be a little fuzzy, since some Ponzi schemers pretend to be an honest business and some real businesses end up being, functionally, a Ponzi scheme.

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Re:Postmates’ new IPO delay indicates Wall Street is turning... by dvt on Tuesday October 08, 2019 @09:52PM (#21199219)
Makes sense, thanks for the clarification!
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Re:Postmates’ new IPO delay indicates Wall Street is turning... by AmericanChopper on Tuesday October 08, 2019 @09:43PM (#21199171)
No. A Ponzi scheme uses money from new investors to pay returns to old ones. Generating liquidity for investors to sell equity is not at all similar.
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