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Investors don't operate charity funding to accrue value for the mutual collective benefit of some global system. Investors MUST accrue ROI to their own account
by pjlegato 2y ago
Investors don't operate charity funding to accrue value for the mutual collective benefit of some global system.
Investors MUST accrue ROI to their own account and/or that of their own investors, the limited partners. If they do not, they're done. Going bankrupt personally while providing huge value to the world at large is a TERRIBLE outcome for any investor.
Tesla invented great things that provide huge positive ROI to the global electrical system, yes. Nonetheless, giving Tesla 150k was a rather poor investment for JP Morgan. If Morgan had made many more such bad investments, he'd be bankrupt, and unable to fund any further value for anyone.
- davedx 2y agoBut that's not how VC funding works! Many to most of their investments will fail - that's completely normal. In the case of Tesla, that was also true - and then some of them (e.g. his transformers) resulted in massive wealth creation for Westinghouse's companies at least. JP Morgan understood that as well as anyone. Venture capital is a numbers game. The world is full of examples of founders whose first few companies failed and they then went on to start companies that were successful. The very nature of the US's system that allows failure is why it has such a booming startup ecosystem...