Oh I see. You mean that without the capital gains there's no reasons for VCs to invest in the first place, since listing on the stock market is VCs and founders selling their equity. I agree on that point - but then VCs and founders aren't non-productive; they built a company.

You still don't need an entire massive industry for "secondary equity sales" in order to float...maybe. I'm less convinced of my own point now, well done. If I had time to build an economic model to study it, I would.