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Terrific post, right on every single count. But ... There's a lot of people out there who think they have got the massivest bestest idea since Zuck's IPO and

Terrific post, right on every single count. But ... There's a lot of people out there who think they have got the massivest bestest idea since Zuck's IPO and it will only take a good programmer a couple of days to implement this awesome idea and then they'll be rolling in it. So your startup shark is P T Barnum's great great grandson ... and cashing in on $8000 here and $8000 there and before you know it he's got the best gig going.

orionblastar 14y ago
Figuring that 90% of startups fail in this manner, he has a 10% chance of hitting a jackpot. But then he's ruined 90% of the startups that didn't do so well in order to do it. Let's say he funds 1000 startups that is $8M invested, he loses $7.2M in investment money due to a 90% fail. But 10% go on to earn him one million dollars in company stock each. That is a $100M earnings minus the $7.2M loss $92.8M in profits. But if he gets a Facebook Zuck IPO in billions, well he found a diamond in the rough, have won the startup lottery. But you have to ask, why aren't more investors doing this?