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Dividends? Though the quote doesn't actually mention large profits, just large revenues.
by ojbyrne 18y ago
Dividends? Though the quote doesn't actually mention large profits, just large revenues.
- fallentimes 18y agoDividends, especially with the current capital gains tax rates, are a wonderful solution. This assumes your investors can be patient enough to receive them.
- tptacek 18y agoEspecially if there's no mid-term liquidity event to hasten a startup's ability to actually pay a dividend.
- jhancock 18y agoI think dividends are interesting for certain classes of startups, particularly during downturns. In boom periods, VCs follow the "dumping" principle. Dump your product for free to as many users as possible to get market share and drown out competitors with a lessor war chest. In a downturn, there should be less of this and more opportunity for businesses to focus on traditional evolution; i.e. getting to profits. Perhaps we need a new class of VC to accomplish this. Invest in sizes more like an angel but with clear nearer-term profit agenda.
- mtw 18y agobut then, you'd require that startups are profitable, right from their first years, which is hardly the case
- ajkirwin 18y agoMaybe that's because, from what I see, very few startups are EVER profitable. They just get pumped and dumped.