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So by this logic the whole startup scene is "money losing"? It just shows how bankers are short-term oriented and do not understand long term investing that at
by 5ersi 11y ago
So by this logic the whole startup scene is "money losing"?
It just shows how bankers are short-term oriented and do not understand long term investing that at the end really makes the difference for the whole society (and ultimately turn the profit).
- pluma 11y agoWell, it is. Most startups fail, meaning someone's investment simply evaporates. There are unicorns, sure, and some startups stabilize or cash out, but if you pick any startup at random, you're likely looking at something that's burning money and will fail eventually.
- 5ersi 11y agoOf course, because startup success is not a linear distribution. Most startups fail, only a minority succeed, so "randomly choosing one" is a wrong way to assess the whole market. And that was my point about bankers looking at moonshot projects as "money loosing". They should looks at startup ecosystem as a whole and assess how much return on investment it has long term, and then look at Google's moonshot projects the same way (or more favourably, because Google is not a random startup - they can execute much better).
- te_chris 11y agoWhy wouldn't the whole startup scene be money losing? Seems like a lot of hot money being spent on desperately acquiring customers for unsustainable and insufficiently differentiated or useful products. If the hot angel money disappears the customers for all the dubious startups will too and you'll see some interesting times. Guess we'll really know how many log-parsing etc startups the world needs.
- pjmlp 11y agoNot only bankers. Anyone that is doing R&D on some enterprise is always on the minus column. I have been in a few enterprises where R&D costs where cutted down, because we were loosing money. It was of course a recipe for failure, as the money losing department (R&D) could no longer fulfill the requests from the money earning departs (sales and marketing).
- tljr 11y agoThat sort of thinking trickles down. Falls through the cracks in the money.
- motoboi 11y agoBankers are not short term oriented. Their shareholders are. VCs play with their own money.