Got into the gpt3 beta June 2021 and haven’t looked back, yet it’s incredibly sad we had no avenue to invest in these companies until now.

Why doesn’t a private company stock market exist?

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tumdum_ 2 hours ago | parent | next [-]

Before the 2012 JOBS Act, a US company generally had to register with the SEC if, at its fiscal year-end, it had:

* 500 or more shareholders

* More than $10 million in total assets.

Employees who owned shares counted toward that threshold, which made it particularly relevant to startups that paid employees partly in stock.

The requirement was to become a public *reporting* company, publishing financial statements and other SEC disclosures. It did not require an IPO or a stock-exchange listing, but it encouraged an IPO.

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muvlon 3 hours ago | parent | prev | next [-]

There have been billions and billions invested into Anthropic. It's very evidently possible. Just not for the general public.

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vincnetas 3 hours ago | parent | prev | next [-]

It exist, but not for poor peaople.

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jdcasale 3 hours ago | parent | next [-]

This is a little bit cheeky, but basically yeah.

Venture investment is limited to people who can demonstrably afford to take on the level of risk inherent to the market they're investing in. If you can't comfortably afford for the entirety of your venture investment to go to zero, you can't afford to invest in venture.

The exclusion criteria aren't perfect, (accredited investor designation is somewhat coarse-grained) but they're relatively reasonable.

	▲	deadbabe 2 hours ago \| parent [-]
		A lot of people can afford investments to go to zero. Some are even accredited investors. The problem is access. You can’t just go to some private market, and by the time you hear about a company it’s too late to get in.

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hello5010 3 hours ago | parent | prev [-]

[dead]

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DEDLINE 2 hours ago | parent | prev | next [-]

Secondary Markets. There are exotic products in crypto ecosystem that can give you this exposure as well.

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kingstnap 3 hours ago | parent | prev | next [-]

> Why doesn't a private company stock market exist?

There is something almost ironic about you saying this on a site ran by Y combinator.

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TrackerFF 3 hours ago | parent | prev | next [-]

Because we - the plebs - are here to provide liquidity to the risk-takers. Hence why they have to IPO.

But for what it is worth, for every successful AI company like Anthropic, OpenAI, etc. - there are probably tenfold more that are valued in the low billions, and will be the first ones to wash away / become worthless if/when the bubble pops.

And lastly, private sales do exist.

	▲	hunta2097 3 hours ago \| parent [-]
		Increasingly these days, it seems if a VC backed company was profitable it would never IPO. Why would they want to share profits? In these companies, the shares are the product. Just like on social media you are the product, not the content.

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arionmiles 3 hours ago | parent | prev | next [-]

It's called the Secondary Market

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jimbokun 2 hours ago | parent | prev [-]

> Why doesn’t a private company stock market exist?

Because then it would be a public stock market?