, Columnist
The Dogs Ate SoftBank’s Money
Also scooters, direct listings, bribes and Supernormal Cognition.
Well here’s a trade:
Traditionally you don’t see a lot of private companies actively trading their stock on valuation. (Public companies, oh, sure.) In general if you are a struggling startup, or a successful growing startup for that matter, you will sell stock because you need money, not because you think your stock is overvalued. And you generally won’t buy your stock at all: You need to conserve money and spend it on your business, not hand it out to shareholders. The whole point of raising equity capital is that you don’t need to pay it back when you’re struggling.