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California doesn’t survive on finance, which is much more woo and social network effects. Who leaves where makes way more waves.
by SamoyedFurFluff 3y ago
California doesn’t survive on finance, which is much more woo and social network effects. Who leaves where makes way more waves.
- kstrauser 3y ago> California doesn’t survive on finance You’ve gotta be kidding me.
- smabie 3y agoNot that many trading firms / hedge funds in California
- radicaldreamer 3y agoThis is more of a function of where these industries developed historically and not tied to non-competes. There’s a lot of financial innovation in California (see crypto/fintech) but trading itself is still tied to proximity and network effects and historical entities (broker dealers etc.)
- eesmith 3y agoSee also Hollywood accounting. Return of the Jedi, for example, has never gone into profit.
- deleted 3y ago[deleted]
- mike_d 3y agoVenture capital is a fancy word for hedge fund. Pool institutional money and try to do a better job than your peers at picking investments that will yield overall returns for the fund. It only differs in liquidity timeframes. https://en.wikipedia.org/wiki/Sand_Hill_Road https://en.wikipedia.org/wiki/Sand_Hill_Road
- govg 3y agoVenture Capital and Hedge Funds are similar in the sense of "they both invest money and try to make superior returns". Just like all software is similar since "it uses computation to do useful stuff". Venture Capital firms rely a lot more on deal flow and network effects. Their focus is usually on early stage private financing. There are certainly hedge funds which also do similar investing, but by and large they don't play a role during the investing process and largely work with public securities and other instruments. This is also why VC and PE industries tend to hire from B schools, and look for backgrounds very different from hedge funds which by and large tend to pick students from more quantitative or scientific disciplines.