3 ms·
You use later stage investments to pay off the earlier investors. Eventually, you go and IPO and the general public cashes out the later investors and then the
by datadrivenangel 3y ago
You use later stage investments to pay off the earlier investors.
Eventually, you go and IPO and the general public cashes out the later investors and then the stock goes to zero.
- lotsofpulp 3y agoIs the plan or expectation of the stock to go to zero (or otherwise dropping precipitously)? If not, I do not see the value in labeling it a Ponzi scheme. If there exists a business plan and the bet is to invest in something that provides utility, then it seems like any other investment in any other business.