7 ms·

I find it amazing that a company can get over $5 million without yet charging for their product. But then again, they kind of just did get people to pay for the

• beat 13y ago
  The investors clearly see a payoff down the road. It happens, you know.
  • loceng 13y ago
    And these investors are pretty good at seeing where things are going, understanding their value - and then supporting them to get there.
    • wr0ng 13y ago
      They're not. The baseline probability of profitability for these types of companies is incredibly small. However, the potential profit that you might make for any one of these companies is extremely high (usually by selling the company, not by the company's inherent ability to turn a profit) - so invest in multiple companies and if you're lucky the 'big one' will beat your losses many times over.
      • loceng 13y ago
        You don't think they have more prominent wins in their portfolio than most other VC portfolios out there?...
        • untog 13y ago
          But what is the actual amount for "more"? If it's 20% success instead of 10% it's still not a good chance of success for the individual company.
          • easytiger 13y ago
            VC funding, to my eyes, has a huge amount in common with Horse Racing.
        • wr0ng 13y ago
          Yes, though regression to the mean might suggest that they won't be so lucky in future.