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I don't know the answer to this question, but if I were an investor I'd be looking to create a business that showed a lot of long term promise.... Then I'd want
by johngalt 16y ago
I don't know the answer to this question, but if I were an investor I'd be looking to create a business that showed a lot of long term promise.... Then I'd want to sell that promise. So acquisition or a big stock sale (IPO).
Think of an incubator as a tree nursery. They handle the high risk portion of getting the seeds to grow into a sapling, and determine if it will bear fruit. But fundamentally they don't want to be a fruit producer, and they aren't interested in running an orchard. They are selling the promise of fruit for years to come to someone else.
- brudgers 16y ago>"Think of an incubator as a tree nursery." A nursery will plant 3000 seeds. Pot up the 2000 that survive the first year to one gallon and sell half as one gallon to recover their costs. Later they will pot the remaining 1000 up to three gallon and sell many of those. Very few will be sold as 45 gallon trees.