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It's really simple, this is VC pyramid scheme at play. Say you put $100M into a company at $1B valuation. A year later you put $250M at a $3.25B valuation. Your
by muttantt 2y ago
It's really simple, this is VC pyramid scheme at play. Say you put $100M into a company at $1B valuation. A year later you put $250M at a $3.25B valuation. Your $350M is now valued at made up $580M. When the company later sells for just double, $7B, your $350M became $1.2B.
- lotsofpulp 2y ago> When the company later sells for just double, $7B, your $350M became $1.2B. “If”, not “when”.
- riku_iki 2y agoThey may have clear path to "when", since they invest. For example, I see some transactions where smaller company is acquired by larger company, and it looks like both companies have the same core investors who guide through this route.
- ilrwbwrkhv 2y agoYup this is really it. For the last decade VCs have played this horrible pyramid scheme. It is bad for the whole country and the economy.