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The VC ponzi scheme. 1. The Bank lends money to startup 2. They raise money from VC 3. They pay back the loan to the bank using the VC money 4. Valuation ra
by marcopicentini 4y ago
The VC ponzi scheme.
1. The Bank lends money to startup
2. They raise money from VC
3. They pay back the loan to the bank using the VC money
4. Valuation raise and the VC shows high returns
5. VCs raise more money to repeat the process
6. Small investors buy shares of high-tech company because bonds yields 0%
It works, until it doesn't anymore.