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You are right. I don't mean to say they run the risk of bankruptcy. The amounts invested are only in the millions here (seed companies). However, the rationale
by ChaitanyaSai 19y ago
You are right. I don't mean to say they run the risk of bankruptcy. The amounts invested are only in the millions here (seed companies).
However, the rationale that led a lot of risk assessors to view the bundling and securitization process of sub-prime loans as meaningful is what I find to be parallel.
You are also right that VCs and their investors are sensible as of now. It boggles the mind that highly leveraged companies would buy and hold on to high-risk bets.