3 ms·
There is an option #4 that I’ve been around a few times: build a shark that is doing the acquiring within 5 years. Superior tech, maybe hyper efficient, hyper
by j45 3y ago
There is an option #4 that I’ve been around a few times: build a shark that is doing the acquiring within 5 years.
Superior tech, maybe hyper efficient, hyper profitable.
- yowlingcat 3y agoThis model is interesting, and I've definitely been wondering about this a lot more in the new macroeconomy. Do tell more if you're up for it. From my perspective, it's effectively the PE model except the funding source is the company's own revenue rather than investment capital.
- deleted 3y ago[deleted]
- j45 3y agoI had drafted a reply but would be interested to know what you're looking after - is a story/experience of PE from a technologist on the business side what you're seeking?
- eastdakota 3y agoYou still eventually need to return money to your private market investors at some point. So that just pushes the outcomes out later. Or, again, in the super rare case that you’re generating so much case that you can pay investors back at a rate of return they’re happy with with dividended cash flows.
- j45 3y agoI meant the ‘super rare’ case. It’s not so rare in some industries like oil and gas, etc where cashflow is the purpose of the work. Add software that does what nothing has before.. and the table turns.
- eastdakota 3y agoAgree.
- JumpCrisscross 3y ago> still eventually need to return money to your private market investors If that’s what you pitched them. Most businesses are private. Most rely on outside funding. Most of them never exit, and are never expected to.
- ymolodtsov 3y agoA lot of VC funds wouldn't accept your dividends because this type of income might create additional taxation and reporting obligations for them.