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VC investors know what they're getting into. Every investment is a gamble and that's OK. As for why these companies deign to exist at all, they're just like mo
by crispyambulance 11y ago
VC investors know what they're getting into. Every investment is a gamble and that's OK.
As for why these companies deign to exist at all, they're just like most actual business: they make enough to keep going, perhaps some growth on the horizon, people put food on the table, and build careers.
Not every venture has to end in an IPO and unending explosive growth, nor are those that don't "failures".
If every funded company had to pay back every dime of VC investment upon "failure", no one would take risks. That's the game and VC's are OK with it.
- Animats 11y ago"Not every venture has to end in an IPO and unending explosive growth, nor are those that don't "failures"." The most likely outcome is what VCs call "zombies" - companies that can cover their operating costs, but can't pay back their investors. They're a headache for VCs, because they won't die and require attention. YC seems to be designed for force startups to fail fast, so they don't end up with a huge portfolio of zombies.