Inside Job: Facebook I.P.O. Shows the System Is Broken : The New Yorker
Eric Barker stashed this in Facebook!
"The IPO system only works if it preserves a balance between public and private investors. If this balance is upended, and virtually all of the rewards are reserved for insiders, ordinary investors will refuse to play the game. A dearth of IPOs would hurt insiders along with everybody else." [Read more.]
Back in the day, public investors were able to capture 99 percent of the “terminal value” of companies like Amazon, Cisco, or Microsoft (see slide deck from William Quigley of Bullpen Capital).
See also: To the "A" round go the spoils.