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TBH I'm having a real tough time reading this on the sarcasm-scale haha I think the big problem though is that for every scam investor, there is at least one v

by petee 5y ago

TBH I'm having a real tough time reading this on the sarcasm-scale haha I think the big problem though is that for every scam investor, there is at least one visionary who might actually pull it off, and its not always easy to tell the difference between the two...although sometimes its really easy

PragmaticPulp 5y ago
> I think the big problem though is that for every scam investor, there is at least one visionary who might actually pull it off The mistake is to think that the public investor has equal access to both the visionary entrepreneur and the scam investors. They don’t. Professional investors have already evaluated and sorted these investors very effectively. It’s literally their job. The good entrepreneurs can collect all the money they need from investment firms. They’d rather take VC from 5 firms than public money from 500 unsophisticated investors who require handholding, so that’s what they do. That leaves a very adverse selection of remaining entrepreneurs to pitch the public. There might be a legitimate misunderstood entrepreneur in there, but they’re mixed in with 100 completely unqualified or scammy entrepreneurs who were already vetted and passed on by professional investors. That’s why by the time an investment gets shipped to the public, it’s usually confirmed to be a bad deal.
- john_yaya 5y ago
  This is all very true. The one possible exception would be entrepreneurs who can’t access the experienced, professional investors, because they don’t have the right educational or personal connections. If these people exist, then public investors can find great opportunities that established ones are bound to overlook. Since the startup world isn’t quite as meritocratic as it pretends to be, and is arguably less so than it was 20 years ago, I’d say that yes, there are investment bargains like this to be had.
- deleted 5y ago
  [deleted]

by petee 5y ago

PragmaticPulp 5y ago

> I think the big problem though is that for every scam investor, there is at least one visionary who might actually pull it off The mistake is to think that the public investor has equal access to both the visionary entrepreneur and the scam investors. They don’t. Professional investors have already evaluated and sorted these investors very effectively. It’s literally their job. The good entrepreneurs can collect all the money they need from investment firms. They’d rather take VC from 5 firms than public money from 500 unsophisticated investors who require handholding, so that’s what they do. That leaves a very adverse selection of remaining entrepreneurs to pitch the public. There might be a legitimate misunderstood entrepreneur in there, but they’re mixed in with 100 completely unqualified or scammy entrepreneurs who were already vetted and passed on by professional investors. That’s why by the time an investment gets shipped to the public, it’s usually confirmed to be a bad deal.

john_yaya 5y ago
This is all very true. The one possible exception would be entrepreneurs who can’t access the experienced, professional investors, because they don’t have the right educational or personal connections. If these people exist, then public investors can find great opportunities that established ones are bound to overlook. Since the startup world isn’t quite as meritocratic as it pretends to be, and is arguably less so than it was 20 years ago, I’d say that yes, there are investment bargains like this to be had.
deleted 5y ago
[deleted]