> I realize exit/liquidity was/is the bigger reason for tech IPOs already, but it seems somehow unnatural to completely abandon the role of financing. Not sure where I'm going with this.
This is a big deal. It used to be that small but growing companies would IPO and we could all invest in it and reap the benefits of our infused capital if the company succeeds. The risk was high but so was the reward for regular folks. Think of everyone who invested in Apple, Microsoft, and Google. But over the last decade, large investors realized that instead of letting the whole market absorb the benefit, they could just cherry pick the most promising companies and invest in them, and reap the real benefits when the company IPOs at a much higher valuation.
This is what happened with Facebook. A $100B IPO does not mean Facebook is the most valuable company to IPO. It means the largest potential of growth that could be exploited, had already been exploited. Other than FB employees and pre-IPO investors, nobody got rich off FB. Similarly, nobody is going to get rich off Flipkart.
The effect this has on the long-term economy will be huge. Large investors will continue to gain the most from burgeoning companies while common folks will continue to see moderate 5% gains in their 401k and investment portfolios. The days of savvy investor are over.