3 ms·
Ok so my numbers aren't exact but you are right, the aggregate return of VC investments tend to be positive. Same with the stock market. However, VCs are in mo
by rm_-rf_slash 11y ago
Ok so my numbers aren't exact but you are right, the aggregate return of VC investments tend to be positive. Same with the stock market.
However, VCs are in more of a position to influence the growth of their investments. There is nonstop hype for companies that make zero profit because of the hope that it will enable bigger funding rounds, a buyout, or an IPO.
The only difference between overhyped no-profit startups and a Ponzi scheme is that the latter knows the investment is a bust, while the former isn't sure.
- twblalock 11y agoActually, there are quite a few other differences, including the fact that Ponzi schemes are intentionally fraudulent, and the fact that the many of the "overhyped" startups actually do have a chance at succeeding, which is proved by the fact that some do succeed.