The IPO Market Closed After Facebook. That's a Good Thing

Mark Zuckerberg, chief executive officer of Facebook, center, at the remote opening of trading at the Nasdaq MarketSite. Photograph by Zef Nikolla/Facebook via Bloomberg

In June, when Goldman Sachs banker Anthony Noto warned at the investment bank’s F.ounders conference recently that the initial public offering market was effectively going to be closed to Silicon Valley startups all summer, it shook up the Valley. This came on the heels of Y Combinator founder Paul Graham’s warning that the bad performance of Facebook’s IPO will hurt the funding market for earlier-stage startups.

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