Tech Startups Choose to Stay Private in I.P.O. Standoff
A lot of folks are saying that companies don&#x27;t have to raise money in the public markets.  Yes, that&#x27;s true, but...<p>I&#x27;m skeptical.  Simply put, the liquidity that comes with the public markets is a huge advantage - IF your company has its financial act together, otherwise, the scrutiny offsets the liquidity advantage.<p>The history of financial markets is littered with examples where secrecy leads to wild overvaluations at best and fraud at worst.<p>Instead of hypothesizing that we&#x27;ve entered a magical golden era where private markets provide all the financing but never require exits, it makes more sense to assume there is an epic amount of confusion, misguided expectations, and in some cases outright fraud.  Every single financial cycle in history has witnessed these behaviors.  Every. Single. One.  Today&#x27;s Silicon Valley is no different.<p>In short, for all these great companies out there... How do you really know how they&#x27;re doing financially?  Do they even know how they&#x27;re doing?  Where&#x27;s the evidence?  Without audited books in compliance with GAAP, who can tell?