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It was underwriting, you know, it was like doing investmentbanking, underwriting public offerings. It was dealing with like the sort of guts of the bank and like new product development and capital and, and balance sheet. If the CEO sexually harasses someone, the company gets hacked. But, but keep going.
You’re also, you’re a publiccompany, you’re living quarter to quarter and the considerations are different 00:17:02 [Speaker Changed] To say, to say the, the very least. And the rest of the pack includes Vanguard as well as a bunch of other much smaller clean sheet startups in, in the space.
Venture capital was the nomenclature for everything that was basically a private investment. RITHOLTZ: But you’re not dealing with startups; you’re dealing with — BARATTA: Correct. BARATTA: Even more mature companies. RITHOLTZ: — firms or private equity firms? BARATTA: Yeah. BARATTA: — technology.
I think a lot of startup founders are actually the opposite, where it’s like we choose to go to the moon, not because it’s easy, but because we think it’s going to be easy. Eva Shang : So at the time that we launched, there were already publiccompanies that were doing litigation finance.
And what was interesting was the first leveraged buyout of a publiccompany happened when I was in graduate school. KKR took a stock exchange company called who Houdaille, private, and it was the first time there’ve been — RITHOLTZ: ’79 or something like that? It was between corporate law and investmentbanking.
00:11:30 [Speaker Changed] So that flipping of, of the power dynamics from the capital to the entrepreneur, does that have anything to do with companies now staying private for so much longer? That seems like there’s endless amounts of money around and, and no shortage of people willing to, to fund startups.
Barry Ritholtz : There’s, there’s a different sense of, of creating a company versus creating a, a certain type of space inhabited by people. So, so let’s talk about some of those companies that you built. You begin at a few tech startups, you found Dex, which eventually gets acquired by Lotus.
At that point, I’d been covering, as you mentioned, investmentbanking, Goldman Sachs for a couple years. You’ll remember IPOs back in the day, investmentbanks used to win them by saying, “We’ve got retail, give us that allocation, it doesn’t matter at all anymore.” RITHOLTZ: Right.
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