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<blockquote data-quote="OnyxPharaoh" data-source="post: 5446167" data-attributes="member: 6669063"><p>I'm not entirely sure what you mean by this.</p><p> </p><p>Size doesn't factor in to whether or not a company is privately or publicly held. The reason RPG companies favor private ownership or LLC status is because it gives them greater control over their intellectual property.</p><p> </p><p>The drawback to not being publicly traded is that it creates difficulty in raising new capital. Without easy access to additional capital to fund new projects the company is forced to plow back it's net income severly limiting its growth potential.</p><p> </p><p>I don't think the flaw is with the industry, but instead with the business models commonly employed by these entrepreneurs. A narrow focus coupled with limited knowledge on how to properly diversify their assets forces many companies into a short growth spurt followed by a rapid death.</p></blockquote><p></p>
[QUOTE="OnyxPharaoh, post: 5446167, member: 6669063"] I'm not entirely sure what you mean by this. Size doesn't factor in to whether or not a company is privately or publicly held. The reason RPG companies favor private ownership or LLC status is because it gives them greater control over their intellectual property. The drawback to not being publicly traded is that it creates difficulty in raising new capital. Without easy access to additional capital to fund new projects the company is forced to plow back it's net income severly limiting its growth potential. I don't think the flaw is with the industry, but instead with the business models commonly employed by these entrepreneurs. A narrow focus coupled with limited knowledge on how to properly diversify their assets forces many companies into a short growth spurt followed by a rapid death. [/QUOTE]
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