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Right. the VC arbitrage is disappearing. However the gate keepers are still there. This just impose search and transaction cost on founders with no benefits to the company . I envision the next steps to be:

1. Startup ETF for pre exit companies. 2. Stock exchange for startups.

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I'm sure people would want to have an ETF for pre exit companies in the same way that they'd like to have a NYSE without SEC oversight.

I'm pretty sure there are rules which involve "looks like a duck, quacks like a duck, legally it's now a duck" which make it hard to trade pre-exit companies with any kind of useful liquidity.

Sohail Prasad (YCS12) is building a publicly traded for privately held startups! https://www.wsj.com/articles/fund-to-let-retail-investors-be...

Stock Exchange for private companies already exists[1] but it doesn't look very useful for people outside. What I think would be revolutionary is something between angel investment and stock market clients.

[1] https://cartax.com/

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