3 ms·
What's the end game, then? If something isn't sustainable to sell at a price people are willing to pay, is the goal to create a monopoly so people have to pay a
by mysterydip 4y ago
What's the end game, then? If something isn't sustainable to sell at a price people are willing to pay, is the goal to create a monopoly so people have to pay a higher price? Or to somehow bring cost down over time? Something else?
- hgsgm 4y agoThe goal is to sell the stock to fad-chasing retail buyers who don't do due diligence.
- oldgradstudent 4y agoSelling to retail is a long con. Once you manage to get VC money, there are endless way to loot it. The stupider the VC, the easier it is. You can pay yourself, you can sell stock on the secondary market, you can do non-arm's-length deals, and so on. Adam Neumann became a billionaire without selling to retail investors.
- BeFlatXIII 4y agoWhen you go broke, loot the office on the last day. Free home office furniture upgrades for everyone!
- cujaneway 4y agoProbably the same as any unicorn, hit their IPO and make a lot of money for the initial investors. You don't need to aim for long-term growth, just make money for whomever provided your seed funding and they'll happily invest in your next ~ useful ~ product too, repeat ad nauseam.
- satvikpendem 4y agoOnce again the show Silicon Valley satirizes this extremely well: https://youtu.be/YZFTaEenaHM https://youtu.be/YZFTaEenaHM The product of a VC backed company is not whatever it sells; the product is its stock, to be sold in the IPO to make the VCs and founders shit tons of cash.