Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave • Hacker News Board

Re: Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave

#161

Post by YZF » Fri, Apr 20, 2018, 4:12 AM UTC

jjeaff wrote: post #67

abalone wrote: post #47

Earlier quoted context omitted.

> Another variable is whether your personal effort materially affects the outcome for the company. Well no, the question supposes you work for the company in either case. If you held $1M in cash, would you invest it all in the company you work for because maybe you can affect the outcome? If not then probably you shouldn't hold onto $1M in equity... if you're perfectly rational that is.

There is one reason that it might behoove you to keep everything invested in the company you work for. It may be that you have insider information that no one else knows.

Technically if you buy the stock based on insider information you're breaking the law. If you get stock and don't sell it I don't see how that can be considered insider trading...

Re: Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave

#162

Post by toephu2 » Fri, Apr 20, 2018, 5:58 AM UTC

adventured wrote: post #65

toephu2 wrote: post #55

Earlier quoted context omitted.

So? A rising tide lifts all boats.

You don't buy these companies to catch a temporary rising tide. Market timing is more often financial suicide, one of the worst mistakes amateur investors make. You buy for the growth and long-term picture. If you believe in the growth potential, you buy in at an early opportunity. ServiceNow's stock has gone up six fold in less than six years. Their revenue has climbed from $424m in 2013, to $1.93b in 2017. The last…

You're cherry-picking.

Re: Silicon Valley Venture Capitalists Prepare for an I.P.O. Wave

#163

Post by jjeaff » Sat, Apr 21, 2018, 6:21 PM UTC

YZF wrote: post #161

jjeaff wrote: post #67

Earlier quoted context omitted.

There is one reason that it might behoove you to keep everything invested in the company you work for. It may be that you have insider information that no one else knows.

Technically if you buy the stock based on insider information you're breaking the law. If you get stock and don't sell it I don't see how that can be considered insider trading...

Yes, which is why I said "keep" the stock. If you're buying and selling based on insider info, you could be in trouble (thought unlikely as an employee that isn't an executive).

But no one could be prosecuted for just not selling stock they receive as compensation.