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You don’t seem to understand basic economics. When you get on a bus and pay for your ticket, is the rest of the ride a free ride? VCs are running a business to
by rdlecler1 2y ago
You don’t seem to understand basic economics. When you get on a bus and pay for your ticket, is the rest of the ride a free ride?
VCs are running a business too. Most VCs fail to return the capital to their LPs. That’s right, then spend 10 years of their life working with startups and have nothing at the end. They take RISK and they try to DERISK their investment by helping the portfolio company.
There’s also a LOT of stories where a VC invests a LOT of money only for the company to get recapped. The founders are given (some say rewarded) with new equity with the VC is wiped out. In many cases a founder will exit handsomely and the early VCs who came in end up with nothing. That’s the risk.
VC is simple but it’s not easy.