A few days ago I documented a few notes making a bullish case for Palantir, searching to find excellent news amidst the business’s substantial historical deficits.

Heading into the next phase of Palantir’s march to the general public markets, I was extremely curious to see how the business would refine its S-1 filing to give itself the very best possible shot throughout its upcoming launching.


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And we finally did get a new S-1/ A filing, a document that our own Danny Crichton quickly parsed and covered. What he found was a set of modifications that appear to increase the possibility that 3 Palantir experts will manage more than 50% of the company’s voting power forever, perhaps making it a controlled company which would loose the firm from select regulative requirements.

Danny dryly noted that”given the reduced voting power of worker and financier shares, it is possible that these voting provisions will negatively impact the last rate of those shares.” That’s being polite.

Mulling this over this morning, I kept thinking about Snap, which offered stock in its IPO that gave new shareholders no votes at all, and Facebook, which is controlled by Mark Zuckerberg as his personal fiefdom. The 2 are not alone in this matter. There are a variety of other public tech business that supply particular groups of pre-IPO shareholders more votes than others on a per-share basis, though possibly to a smaller degree than what Facebook has actually managed.

It feels like numerous startups (and former start-ups) have actually decided gradually that having material shareholder input is a bad concept. That, in impact, they need to run business as not merely monarchies, but unquestioned ones to boot.

I am not totally convinced that this is the best way to create long-term shareholder wealth.

If you are on the other side of this specific fence, I understand. Facebook is a worldwide juggernaut and Snap has finally handled to eke out stock-market gains to bring its worth it back where it was around when it went public. (A three-year journey.)

But those arguments are only so excellent. You could quickly argue that the two companies might have done much more with less self-sabotage (Facebook) and a bit more spend discipline (Snap).

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.