We have entered an era of high inflation and rising interest rates, with decreased investor appetite for companies yet to make a profit
2. Illiquidity: During a downturn, emerging companies find it much more difficult to raise investment on average. Typically, a raise provided employees with an opportunity to cash in. Now they might be required to wait for a period of time measured in years rather than months. Tax outcomes should be given careful consideration, and for incentives designed around growth in share value – such as share options or growth shares – a realistic starting share price is important.