Skip to content

Comment on A new kind of equity program

Comments

The world has become a bit more complicated lately. Private companies are waiting to go public for longer

There's probably a reason for that: most "innovative startups", especially in the US, are like Cruise: they lose up to a billion dollars a year with no consequences at all. Some, lik Cruise, have nothing to show for it in terms of either product or long term plans to become even slightly profitable.

So they wait for longer to see two things happen one after another:

First, hopefully have enough unlimited inverstor money to corner a market or a niche.

Seond, go for an IPO as "the innovative market leader" (aka the one with deeper investor pokets than competition that is doing literaly the same).

---

In case of Cruise, they are losing 200-300 million dollars per quarter. Trying to compete in the same space as Uber (loses up to a billion dollars a year) and Lyft (up to 1.7 billion dollars a year).

Edit: And Waymo, which is a part of Google's "other bets", and those bets are losing billions, too.

AboutSource Built by g1lg1l

Hackerly is an independent reader for Hacker News, built on the public HN API. Not affiliated with Y Combinator.