Crowdfunding and the Nanny State

Lots of activity in the blogosphere this week on Crowdfunding, coinciding with debate in the Senate of the so-called JOBS bill (HR3606), which contains various provisions relating to Crowdfunding. I wanted to comment on some of the different perspectives, and in particular, on a series of recent posts in one of my favorite blogs, Baseline Scenario. [Read more…]

Fewer IPO’s: the reasons

Relating to my last post on Crowdfunding and the 99%, yesterday’s Wall St Journal had an excellent summary of the state of the US IPO (Initial Public Offering) market, written by Jack Markell, Governor of Delaware.

In my earlier Crowdfunding post, I made the point that the small, early-stage companies that a public investor could invest in 20 years ago no longer do IPO’s on exchanges like NASDAQ, and I felt that was part of the compelling argument in favor of new initiatives like Crowd Funding. Mr Markell adds a lot of color to this, explaining how the “US has experienced a stunning decline in IPOs …. while capital markets in Asia, Europe and South America have thrived“. He cites both a decline in annual IPOs over the last decade, and a decline in total listings on US exchanges (from 8,800 15 years ago to 5,000 today).

This is a different point than the one I was making, but I suspect there are common causes for these two phenomena. [Read more…]

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