4 ms·

>> lifestyle-type businesses e.g. profitable.

• Avshalom 9y ago
  Also parallelism aside pretty sure we both mean i.e. not e.g.
• closeparen 9y ago
  Which is great for the people living off that income, and not great for investors unless it's also valuable. VCs would need to take fewer, smaller risks if they're expecting smaller rewards per success story.
  • Avshalom 9y ago
    I feel like it's a pretty recent development that investors don't expect their investments to turn a profit.
    • closeparen 9y ago
      The investment needs to turn a profit for the investor by appreciating in value, which is different from turning a profit in general.
    • pjlegato 9y ago
      VCs by definition are looking for the Next Big Thing, not to finance someone's lifestyle business. The returns are too low to justify the huge risk. There are many other lower risk ways to get lifestyle-business sized returns for an investor. VC limited partners invest because it has low correlation to other investments and the potential for 100% returns. If they're just getting a potential 7% (or whatever), they can buy stocks or real estate etc. at much lower risk.