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It's an investment/gamble that is realized as revenue now, but is cashflow negative. This may be competitive with throwing that money at additional sales/market
by datadrivenangel 3y ago
It's an investment/gamble that is realized as revenue now, but is cashflow negative. This may be competitive with throwing that money at additional sales/marketing activities, but long term creates the risk that they have to write off a lot of equity and the whole program will have been a loss.
- 8ytecoder 3y agoCashflow shouldn't be affected - might even be positive(?). If they invest $X in a startup, it reduces the cash asset but they'll have an offsetting "other investments" based on the valuation of the startup - which should be at least 100% of the total investments the startup has received. I'm guessing here, but, there's a good chance that it'll be cash flow positive as is. Not to mention the fact that most of the money from this investment flows back to Nvidia, adding to the cash flow as revenue.