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There’s something wrong when you are expected to be a “100x” or “1000x” roi as a startup. So many good ideas and companies go bust once they accept that vultur
by xyst 3y ago
There’s something wrong when you are expected to be a “100x” or “1000x” roi as a startup.
So many good ideas and companies go bust once they accept that vulture capital. End up trying to do too much in order to capture a wider market. Unfortunately it ends in a crash and burn once the VC expectations are not met and money dries up.
- johngladtj 3y agoIf you don't demand at least 100x returns why would you invest in something with a 99% chance of total failure? Is your argument that investors should willingly do things with a negative expected value?
- olivermuty 3y agoHow about the investor doing some of that due dilligence and demanding a plan for how to make money? ZIRP boosted investment the last ten years has been insane (and stupid).
- financltravsty 3y agoValue defined reductively as simply monetary value is peak finance brain. Yes, investors can allocate their resources with the expectation of gain outside the financial realm (but whether or not they have any other sensibilities is a much harder question). A preoccupation with money (or really any superficial thing) makes dull people, with dull ideas, and ultimately dull impacts. I would demand the investor have atleast some inkling of humanitarian sentiment that comes from within, and not simply the environment they found themselves born into. Otherwise, you'll end up with a petty tyrant no different than the owner of car dealership.