That's true, but something also that's true is that raising money through an IPO spreads the risk out to the public, whereas with VCs, the risk is contained.
That's why one of Peter Thiel's original arguments on why there was no bubble centred on the fact that there were no IPOs. No IPOs meant no general public irrationally driving up the price of a stock; rather, the rise in a stock's price in most of the big-name tech startups (or high-growth companies) today are from investment activity from savvy investors who are experts in the space.
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That's true, but something also that's true is that raising money through an IPO spreads the risk out to the public, whereas with VCs, the risk is contained.
That's why one of Peter Thiel's original arguments on why there was no bubble centred on the fact that there were no IPOs. No IPOs meant no general public irrationally driving up the price of a stock; rather, the rise in a stock's price in most of the big-name tech startups (or high-growth companies) today are from investment activity from savvy investors who are experts in the space.