Don’t expect a game changing tech initial public offering anytime soon. Private tech companies are steering clear of going public as long as they can manage, said Marc Andreessen, the co-founder of the venture capital firm Andreessen Horowitz, on CNBC’s “Closing Bell” Monday.
“When you say what’s the next big IPO, the brutal truth is I don’t know and I’m not sure there is going to be one for quite while because the incentives are so strong to keep these companies private,” Andreessen said.
The hangover felt from the dot-com crash and financial crisis has spurred an era of over regulation in the public markets which has essentially caused a backlash from private companies that are refusing to go public, Andreessen said.
Read the full story on CNBC, and watch the recording of the live interview with Andreessen… they are very well done.
Go ahead, we’ll wait.
OK, you’re back. As you might imagine, we feel this is one of the best illustrations of the need for the SEC to get off of their polite asses and move legal equity crowdfunding forward.
The longer this drags on, the more tech companies will become frustrated with the funding vaccuum and it will stall development and creativity.
The only way for the masses to invest in tech will be through equity crowdfunding. So, not only are we depriving up and coming companies from meaningful funding opportunities, we are keeping potential investors out of the picture as people in expensive suits cluck their tongues and wring their hands in confusion.
Yes, equity crowdfunding needs regulation and controls. But we already knew that. It’s time to open the floodgates and get this bankless business finance movement firing on all cylinders.