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I really hope uncapped notes are not allowed. If you look at the history, Dropbox turned a $6M investment into a $5 billion dollar company. Google turned a $2
by jcampbell1 14y ago
I really hope uncapped notes are not allowed. If you look at the history, Dropbox turned a $6M investment into a $5 billion dollar company. Google turned a $25M investment into a $250 billion dollar company. I have a feeling, one of these startups is going to turn a $1M uncapped investment into a $1B company, and there are going to be some really hurt feelings. Someone is going to invest $1000 in the next Google/Dropbox/AirBnB and walk away with $1200.
- deleted 14y ago[deleted]
- loganfrederick 14y agoOne of my concerns with this whole crowdfunding model is that if one limits the cap, then surely the expected value of the the returns from crowdfunding will be negative. You need the gains from the uncapped hits to compensate for all the failures. If your downside is potentially losing 100% of your investment and that odds of failure are somewhere (arbitrarily picked) between 70-90%, and your upside is only a 20% gain 10-30% of the time, the math doesn't make it seem like the model is sustainable.
- tptacek 14y agoWait, what company went from uncapped note angel funding directly to a billion dollar valuation?
- jcampbell1 14y agoI never said that.