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This is what happens when companies are expected to sustain themselves on ever-increasing investment money until an IPO, instead of actually making money themse
by Kronopath 10y ago
This is what happens when companies are expected to sustain themselves on ever-increasing investment money until an IPO, instead of actually making money themselves. It's a Keynesian beauty contest gone wrong.
- Super_Jambo 10y agoIt's what happens when people are too removed from market forces. The VC is not attempting to invest in a business that will make lots of money. They're investing in a business which they can _sell_ for lots of money. The market doesn't get a look in until the last greater fool buys it and is holding it when the music stops. Everyone else has been handsomely rewarded for their tomfoolery so when the music starts playing again they'll dance.