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It’s nitpicking but retailers like Toys ‘r US got killed by PE, not VC. The VC model is invest in a ton of growth companies in the hope of getting a 100X winne
by mathattack 6y ago
It’s nitpicking but retailers like Toys ‘r US got killed by PE, not VC.
The VC model is invest in a ton of growth companies in the hope of getting a 100X winner.
The PE model is to buy stable cash flows using mostly debt. That works until the cash flows aren’t stable any more. That’s why so many PE funded retailers are going under.