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> Market cap is the most important factor in return on investment right? Completely wrong. Hint: You are on HN. Startups obviously don't start at a large marke
by diffeomorphism 2y ago
> Market cap is the most important factor in return on investment right?
Completely wrong. Hint: You are on HN. Startups obviously don't start at a large market cap.
- aurareturn 2y agoI'm not wrong. You just interpreted me wrong. I didn't say you should invest in companies already with a big market cap. I said market cap increasing is the ROI to investors (besides dividends, which is mostly irrelevant when investing in tech companies). That's exactly how startups work. You invest at a cap of $50m. Its market cap increases to $1 billion. You just made 20x (provided you have liquidity).