4 ms·
> That's not how it works, VCs are like record publishers, doesn't matter if most of your companies suck as long as one is a hit. I know how venture capital is
by tanzam75 13y ago
> That's not how it works, VCs are like record publishers, doesn't matter if most of your companies suck as long as one is a hit.
I know how venture capital is supposed to work. The problem is that it hasn't been working out the way it's supposed to.
Over the past decade, venture capital has underperformed the stock market.
Thus, pension funds have gotten their money into illiquid and risky VC investments -- but they haven't been getting paid the liquidity and risk premiums that they thought they were going to get.
(Incidentally, the record labels haven't done that great over the past decade, either.)
- mattmanser 13y agoIf you supposedly know how it works why are you blathering on about pennies here and there? As the post I replied to shows a glaring lack of knowledge. Plenty of VC funds are working exactly how they're supposed to work, don't try and wriggle out of it by claiming that 'of course you know' but somehow dropping a few million here and there on grocery suppliers is a meaningful loss to a VC or pension fund. I'd have far more respect if you just said 'yeah, whoops, didn't know what the fuck I was talking about'.
- tanzam75 13y agoA million here, a million there, pretty soon you're talking about real money. As for your personal attacks upon me, I think it evident that you just want to pick a fight. Four sentences in your post, and all four contain more insult than content. As for "Plenty of VC funds are working ...", I would simply repeat what I've already stated, and you've ignored -- that the industry as a whole isn't delivering the promised returns. Good luck trying to pick the VC funds that are working, rather than the ones that aren't.