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Yes, investors care about the goals of the business. See the promises of Theranos' "40 tests and detect cancer from a single drop of blood". I can't think of
by jasode 9y ago
Yes, investors care about the goals of the business. See the promises of Theranos' "40 tests and detect cancer from a single drop of blood". I can't think of a VC that has the investment thesis of "put money into businesses that has cutthroat competition and drive others out of business".
Theranos had promises of "blue ocean". No competition. This attracted investors like moths to a flame. (We now know they had no competitors because their technology was a fraud.) The investors would have been better off investing in a boring factory making generic aspirin ("red oceans of bloody competition").
- emodendroket 9y agoI'd argue that's basically what Uber is trying to do.
- jasode 9y agoFyi... Peter Thiel thinks Uber is overvalued. He didn't like the way they compete. Uber should be a case study that burning up billions in investor money (billions wasted on trying to underprice Didi in China) was a colossal mistake. How much of that bad strategy is blamed on Travis's vs investors is something we won't know until a tell-all book comes out.
- emodendroket 9y agoI think they're likely overvalued too, but it seems to be an obvious counterexample of the claims about investor behavior regardless.