alt Hacker NewsI wonder how good it is for companies to be allowed to grow so big and still be private? Would it makes sense to require any company with more than a billion dollar valuation to be subject to all the same SEC requirements that public companies are? Could companies be blocked from raising money once the reach a crazy valuation like $1 billion?
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bix6 • yesterday at 9:21 PM
It’s a major issue in VC. Main Street doesn’t get access until it’s time to offload. Prevents capital recycling for early stage as well.
kooshball • yesterday at 9:57 PM
there used to be rules that companies must be public if they have other 1000 investors. is this no longer the case?
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That doesn’t make sense at all. The raison d’être of SEC is to protect regular mom-and-pop investors. A private company just doesn’t allow anyone to invest in them. Why should SEC rules apply? On what legal basis can you force a private company to divulge its financial details? Would you be happy if you, as an individual, have to divulge your account statements if your own net wealth reaches one million?