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Not joking, Ivy League graduates who might have went into finance, have started raising capital and funding small cash returning businesses. It is now seen as a
by ldjkfkdsjnv 3y ago
Not joking, Ivy League graduates who might have went into finance, have started raising capital and funding small cash returning businesses. It is now seen as a legitimate career path, sometimes called a "search fund". An HBS graduate might aspire to buy and run a blue collar business as a way to understand the market.
There are private equity funds that might aquire 50 of these businesses at 2-5M each, roll them into an index, and sell the index. Same with doctors/dentist practices.
The financing of these businesses is so opaque.
- philip1209 3y agoYeah, "Entrepreneurship through acquisition (ETA)", is something I've seen a lot of MBAs study and prioritize. Is it really entrepreneurship though? Seems like "Buy, squeeze, rinse, and repeat" - which is killing businesses rather than creating them.
- ldjkfkdsjnv 3y agoIts not that much different from raising 10M (with nothing but an idea) to build some generic type of software that already has a market. A big secret, raising huge amounts of capital to be an "Entrepreneur", isnt really Entrepreneurship, its being placed into a management position of executing on an already existing (usually proven) idea. VCs certainly see it this way, and so do the pedigreed people they fund. The only people thinking its different, are the ones on the outside looking in.