Pension funds have longer time horizons than the VCs they are being swapped out with. The issue is that these long-term holders require a fraction of short-term holders to give them liquidity, i.e. the safety of knowing that one can exit the investment without a substantial haircut if one needs to.
The present problem is that the proportion of short-term to long-term holders in the market is too high. The former are there to support the latter.
Another point is that the latter, at some point, demand dividends. The antipathy to Apple that I saw on HN recently when it announced its dividend programme is also anathema to a healthy public capital market.
The present problem is that the proportion of short-term to long-term holders in the market is too high. The former are there to support the latter.
Another point is that the latter, at some point, demand dividends. The antipathy to Apple that I saw on HN recently when it announced its dividend programme is also anathema to a healthy public capital market.