Tuesday, April 04, 2006
Interesting argument about the current dearth of IPOs as rational. Are the equity markets really rational when it comes to IPOs?
Maybe. But they've never been very accurate at thinking about a new play's long term prospects (you know, the pop, etc), so I think arguing for IPO rationality is a bit of a stretch.
I think the deeper problem, to tell the truth, is VCs - they refuse to invest in the spaces that are tomorrow's engines of growth, because they are simply uncomfortable with those spaces.
So the game for the next 3-5 years should be quite interesting; if the VC malaise continues, we will certainly see alternative structures and mechanisms to finance innovation. Food for thought.
Our elected idiots are slowly but surely killing innovation in the US with Sarbox, cheap stock limitations, etc.
The way of the future is the AIM market!
I would almost agree with you, but AIM has its problems too - not least of which is fairly severe adverse selection...
...I think we are more likely to see the venture model evolve to something a little more sane than what it is today.
Thx for the comment.