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You 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 ra

You 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 ago
I 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 ago
  Agree.
  - j45 3y ago
    The first time I saw how customizable a PE deal was, and how you could limit how much of a company you give away with how little of the PE you end up drawing by becoming profitable, I was surprised why it isn't more common in tech.
    - esafak 3y ago
      Can you recommend any books on this subject?
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 ago
A lot of VC funds wouldn't accept your dividends because this type of income might create additional taxation and reporting obligations for them.