Why Startup Finance Is Broken and How to Fix It
Interview with Renée M. Jones about her book Untamed Unicorns: Why Startup Finance Is Broken and How to Fix It. Argues that the current dysfunction in startup finance stems primarily from the deregulation of private markets, not over-regulation of public markets. This deregulation allows companies like Theranos and FTX to grow privately for extended periods, operating without transparency and avoiding mandatory disclosure. Such secrecy enables founders to accumulate power, engage in anti-competitive or unethical practices, and extract value through wasteful spending and self-dealing, all while remaining unaccountable. These changes weaken corporate governance, encouraging fraud and inefficient capital allocation, ultimately transferring risk to ordinary investors as private market assets seek liquidity in 401(k) plans.
