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Coin Edition 2025-02-19 12:30:00

Tech IPOs Fading? STOs Are the New Startup Exit Strategy, Says Crypto Expert

Ex-Coinbase executive Balaji Srinivasan claims STOs are the future of fundraising. IPOs and M&As have become obsolete with Abode’s recent attempt to acquire Figma. STOs are much cheaper than IPOs and are more secure and transparent, claims Srinivasan. For a very long time, technology startups have had two main exit strategies: Initial Public Offerings (IPOs) and mergers & acquisitions (M&A). However, according to Balaji Srinivasan, the former chief technology officer (CTO) of crypto exchange Coinbase, the crypto world and blockchain technology have opened a new frontier – Security Token Offerings (STOs). In a post on X (formerly Twitter), Srinivasan explained that at its peak in 1996, there were approximately 8,000 publicly traded companies. Today, that number has nearly halved to around 4,642. This was mainly due to regulatory policies. As IPOs became more challenging, M&A became the preferred route for tech startups seeking liquidity. From IPO and M&A to crypto? The tech M&A era may be ending. But the crypto era could be just beginning. Because the combined effect of new policies is to make it much harder for startups to IPO or M&A, but much easier to… The post Tech IPOs Fading? STOs Are the New Startup Exit Strategy, Says Crypto Expert appeared first on Coin Edition .

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