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Would investors really want substantial downside for CEOs? Over the past two decades, they have demanded more risk and more growth and rewarded doing anything t
by MattGaiser 3y ago
Would investors really want substantial downside for CEOs? Over the past two decades, they have demanded more risk and more growth and rewarded doing anything to grow quickly.
And for those investors who took the biggest risks and demanded the most growth and boldness, the tech venture capitalists (who endorsed crazy growth strategies and paid valuations everyone else thought were insane), there have been tremendous rewards.
VCs are pretty open about wanting to back 50 companies and knowing that 45 will go to zero, 5 will make a bit of money, and 1 will make so much money as to make the rest forgettable. But they need all chasing that mega exit for it all to work out.
Add in that America is by far the best major market for generating investor return at the moment and a lot of it is that the American market embraces risk in a way that no others do.
There are VCs on this board. Would you want your founders to be sent to sell timeshares if their startups failed?