> You can't short sell most early stage startups. If you don't believe in them you just don't invest in them. It's that simple.
I'm not sure the world would have been a worse place for it to have been profitable to point out the failings of say, Theranos.
And the unlimited downside means that shorting startups that are merely unlikely to succeed wouldn't be worth the effort.
Shorting public companies that can survive COVID perfectly well by raising additional funds would be a terrible strategy too: their ability to raise funds won't really be dependent on their share price (they'll be raising debt funding instead) but every time they find a lender the share price will rebound.
I'm not sure the world would have been a worse place for it to have been profitable to point out the failings of say, Theranos.
And the unlimited downside means that shorting startups that are merely unlikely to succeed wouldn't be worth the effort.
Shorting public companies that can survive COVID perfectly well by raising additional funds would be a terrible strategy too: their ability to raise funds won't really be dependent on their share price (they'll be raising debt funding instead) but every time they find a lender the share price will rebound.