A well-known billionaire and investor Tim Draper has advised blockchain companies to avoid attracting funds via Initial Public Offerings (IPO) as regulators have made the process too costly.
Publicity isn’t worth it
Tim Draper, the American venture capitalist and crypto investor claimed IPOs are no longer an actual source of funding industry projects.
According to the investor, the existing regulatory framework acts as a serious constraint for firms who aim to become public. He said, “Regulators made IPO procedure so expensive that it lost its usability”.
Draper explained that the process used to be less expensive and could be used for campaigns worth $50 million and more.
But considering the existing legislation, the billionaire strongly recommends blockchain startups to avoid traditional IPO in case they don’t have at least $5 billion market capitalization.
