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Ask HN: Do VCs introduce risk and instability into the general economy?
By funding the inorganic growth of yet-to-be proven businesses with the intent of taking them to scale, ideally to the public, does venture capital introduce systemic risk? Some of these companies have disrupted and dominated markets due to venture subsidies, not sound and profitable business models. Are VCs socializing the risk to the public?
- mytailorisrich 4y ago> Some of these companies have disrupted and dominated markets due to venture subsidies, not sound and profitable business models That benefits consumers who get subsidised low prices.
- confoundcofound 4y agoUntil the subsidies run out and the underlying model is finally put to the test, at scale with the public.
- mytailorisrich 4y agoWhat's the downside for consumers? I don't think they lose out.