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Well, do you honestly believe that VCs have even a fraction of the power that Wall Street does?

• AndrewKemendo 11y ago
  I think it's a false distinction. Institutional capital, distinct from Angel money, is part of the same ecosystem. VC's are part of the larger global equity market, taking funds from LP's such as pension funds in the same way that Goldman and the rest do. The fact that they are smaller in total dollars doesn't mean they have structurally different goals. At the end of the day a VC has to show returns to the LP in the same way that Wall street does with their private equity departments. In the case of public companies, the company itself has the power over pricing as long as they are doing well (see: Amazon) when they aren't it's private equity that makes the difference and you are back to where you started.
  • ErikAugust 11y ago
    A fair point, thank you.