Right. the VC arbitrage is disappearing. However the gate keepers are still there. This just impose search and transaction cost on founders with no benefits to the company .
I envision the next steps to be:
1. Startup ETF for pre exit companies.
2. Stock exchange for startups.
I'm sure people would want to have an ETF for pre exit companies in the same way that they'd like to have a NYSE without SEC oversight.
I'm pretty sure there are rules which involve "looks like a duck, quacks like a duck, legally it's now a duck" which make it hard to trade pre-exit companies with any kind of useful liquidity.
Stock Exchange for private companies already exists[1] but it doesn't look very useful for people outside. What I think would be revolutionary is something between angel investment and stock market clients.
1. Startup ETF for pre exit companies. 2. Stock exchange for startups.