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Wireless and Mobile ventures attract 'limitless' capital because investors feel that it offers an attractive return/risk profile, often these are winner take al
by fleitz 16y ago
Wireless and Mobile ventures attract 'limitless' capital because investors feel that it offers an attractive return/risk profile, often these are winner take all types of businesses and once a winner has been established money pours in.
If you feel it's unfair then start offering a more attractive risk/reward profile to investors. This FB IPO (initial private offering) doesn't screw other entrepreneurs it forces them to compete. Investors aren't under any obligation to fund your startup.
As my mom always said when I complained about things being unfair: life isn't fair.
- alex_c 16y agoThat's not the point of the article, I think. It's not that FB is unfair because it's a better investment opportunity. It's that by going outside the usual framework, such deals have an advantage - by virtue of less overhead due to regulation - over deals that play by the "rules". I don't know enough about financial regulations to judge whether that's true, but that's the meaning I took from the article.
- gojomo 16y agoOther massively-attractive deals could also improvise their own new frameworks... so it still reduces to: if you're offering a hot deal, you'll be fine one way or another. By testing new arrangements, and creating liquidity for new angels, this kinds of deal also broadens the ecosystem for other ventures.