VC isn't a panacea and doesn't operate in a vacuum. If you raise the cost of going public and staying public, then that makes VC funding or going private more attractive. The VC funding may come with terms that are not expected by public company investors.
But VC-backed companies is only one part of the private equity trend.
The other part that is discussed is small owner-operated or partnership firms getting bought up by bigger ones. Here again, if the government increases regulations, then that tends to fall more strongly on small businesses than bigger businesses.
I'll just add that, with the path of finding VC well-known and well-worn, we should expect greater difficulty. Even if we somehow reversed the trend of all institutions and bureaucracies to become over time larger and more cumbersome, that is, we streamlined government processes, we should expect an additional hesitation of growing enterprises to return to IPO, because VC is now a comfortable path for a significant portion of the roadmap.
