If the incoming Trump administration and Congress want to spur job growth, they should focus on making initial public offerings more appealing to emerging companies.
That's the view of Scott Kupor, managing partner at venture capital firm Andreessen Horowitz.
Kupor, speaking at the CB Insights Innovation Summit in Santa Barbara, California, said there's almost no benefit today for a smaller company — under $1 billion market value — to sell shares to the public given the risks and the hassle.
Analysts won't cover them, there are no market makers for the stock and thus there's no trading and very low liquidity.
"You could in theory go public, but in effect you become orphaned," Kupor said. "We have to solve this problem because it has very serious implications."
With the exception of the rare Uber or Airbnb, the real job creators in tech are public companies, which have traditionally had greater access to capital and the ability to lure talent through stock-based incentives. The Jumpstart our Business Startups (or JOBS) Act of 2012 helped by allowing smaller companies to file confidentially.