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as if they are capital intensive with low risk? Hardware companies are not inherently low risk because they involve hardware. They are often, in fact, capital
by aswanson 19y ago
as if they are capital intensive with low risk?
Hardware companies are not inherently low risk because they involve hardware. They are often, in fact, capital intensive and high risk. See early PC makers, telecom bust, pen computing, etc...
- Alex3917 19y agoMy thinking was that it might be easier to judge the risks involved since starting a hardware company usually requires getting an EE degree and then spending several years learning by working for an established company. Whereas since it is possible do a successful web startup with no previous experience or credentials, VCs have less data points to evaluate the chances of success. In any event, this debate only underscores my point about the clarity of the sentence in question.