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I really doubt that when these startups put money into a bank account they were "knowingly taking a high risk."
by somsak2 4y ago
I really doubt that when these startups put money into a bank account they were "knowingly taking a high risk."
- JohnFen 4y agoThey weren't knowingly taking a high risk, because the risk wasn't high. But they were knowingly taking a risk, and this time the dice rolled up unfavorably. That's the nature of risk. Even low risk things go bad, just not as often.
- jmull 4y agoWe're talking here about bailing out startups. The VC investors, founders, and even employees (to a somewhat lesser extent) made a high-risk decision to invest their time and/or money into something that would probably fail. (Also, it's not like a tax-payer funded bailout is the only way these startups can stay afloat... take a bridge load... find an opportunistic investor. Of course the startup investors would much prefer a taxpayer funded bailout because other options will cost them more money and/or a share of the startup. As many are pointing out: they are seeking to socialize the risks and keep the rewards.)