Venture capital replacing IPOs

As Greece continues to make headlines I thought it might be worthwhile to take a step back and look at other market trends. The venture capital firm Andreesen Horowitz put together a slide pack about technology funding. One slide hit home about the value created in private versus public markets. Private funding is replacing the option of an IPO. A company can raise enough money in the private market that they're delaying going public. By the time they do go public its usually at a decent size because of previous private market valuations. When Facebook conducted their IPO it was at a valuation of $104 billion Google at the time of their IPO was worth $23 billion. For Facebook to match Microsoft's public market returns it would need to be worth $45 trillion. This private funding trend is great for VC firms but not so great for the rest of us. Click through to (VIEW LINK) for the rest of the post