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I beg to differ: Most VCs (those investing risk capital) don't invest in capital inefficient businesses like restaurants.
by rdlecler1 10y ago
I beg to differ: Most VCs (those investing risk capital) don't invest in capital inefficient businesses like restaurants.
- notahacker 10y agoMy point was less about the specifics of the fried chicken restaurant industry and KFC corporate mythology and more about the fact professional investors earn a living trying to pick winning startups; small business owners that decline to become a franchisee or reinvent themselves as a joint venture with you don't. As such, reticence on the part of the latter group to get involved says a lot less about potential weaknesses in your business model than reticence on the part of the investors. (FWIW There are plenty of investors that specialise in investing in restaurant outlets and consumer brand franchises, they just don't tend to be located on Sand Hill Road.)