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I'd say that from a pure opportunity cost perspective the performance of property & mining alone is justification for the lack of VC in Australia. If simple we
by glenngillen 10y ago
I'd say that from a pure opportunity cost perspective the performance of property & mining alone is justification for the lack of VC in Australia.
If simple well understood businesses (dig up rocks or buy land and build) can return > 10% YoY, why would any intelligent investor poor money into an asset class that has underperformed that in the same period?
- jacques_chester 10y agoYet the VC lifecycle is very much like the mining lifecycle. Exploration, drilling, construction, exploitation. The early stages cost millions and often lead to failure, with the occasional profitable case and rare super-profitable discoveries. Scaling up costs major capital, after which, prices allowing, a mine can be a cash cow.