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comment by rozap
rozap  ·  4321 days ago  ·  link  ·    ·  parent  ·  post: Technology Companies That Go Public Get Less Innovative

Can't say I'm surprised.

Google took a ton of heat from shareholders when they announced their self driving car project. It was widely considered to be a frivolous waste of money that would end in failure, was initiated because the engineers thought it would be fun, AND didn't have a "solid" business plan. Look at it now. Their prototypes work. They will only get better. And they opened up a potentially billion dollar market. Can you imagine a world where congestion and collisions no longer exist? Yea, that'll be fucking awesome, and due to some healthy risk taking that is completely uncharacteristic of a publicly traded company, it's in our immediate future.





user-inactivated  ·  4321 days ago  ·  link  ·  

I think the deeper problem is that going public is one of two main ways for a company to gain capital effectively, and this study essentially shows that it's a deterrent to innovation, and therefore possibly to the economy.

rozap  ·  4321 days ago  ·  link  ·  

Definitely. The options are limited. However, as silly as this sounds, crowdfunding is becoming more viable. While at the moment it accounts for next to nothing in terms of how much capital is being injected into companies, it's growing. Maybe in the distant future, or maybe it'll always be a niche.

user-inactivated  ·  4321 days ago  ·  link  ·  

Great point. The internet has expanded the options companies have to make money and thrive. I don't think it'll remain a niche long.