logoalt Hacker News

Analemma_ • today at 5:09 PM • 1 reply • view on HN

I've been saying for a while now to stay the fuck away from tech IPOs for exactly this reason: it's no longer "we need to raise capital so we can get bigger", it's "we're tapped out on growth, and the last round of private investors needs to be paid back, plus employees need their equity to be worth something in order to stay". Private markets extract all the value and then dump the husk on the public.


Replies

lotsofpulp • today at 5:51 PM

The "public" is completely unharmed as long as they stick to broad market index funds. Only the gamblers are harmed.

➕ show 3 replies