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> Most startups are just Ponzi schemes. Most startups (in the tech sense) are ventures. They are attempts to generate new cash flows and create something new t
by gunapologist99 4y ago
> Most startups are just Ponzi schemes.
Most startups (in the tech sense) are ventures. They are attempts to generate new cash flows and create something new that didn't previously exist (or a new twist on something that already existed).
They are unproven. They are risks. But the vast majority are not Ponzi schemes.
- scarface74 4y agoWhat exactly do you call it when: 1. Investors pour money in to companies not hoping that they become profitable. But hoping they can get their money back via an IPO while they are still not profitable. 2. The investment bankers dump their allocation at IPO and get to take advantage of the hype. Then sell the stock to retail investors. 3. The retail investors fall for the hype even though the company still isn’t profitable and the stock price drops? That’s the definition of a “Ponzi scheme”. Everyone throws good money after bad hoping that there is a “bigger fool”.
- Kudos 4y agoYou're describing an IPO, not a startup.
- scarface74 4y agoWhat do you think the purpose of startup investing is? Or even to start one?