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I thought you were saying that investing in a company, especially seed investing, is equivalent to market research. You can of course wait for the research bef
by akkartik 19y ago
I thought you were saying that investing in a company, especially seed investing, is equivalent to market research.
You can of course wait for the research before you invest. I'm not sure how that's an anti-bubble argument, though. The whole point of startups is that there's a risk-reward continuum for when you can invest, from highest risk at an early stage to lowest risk right before an acquisition. The bubble argument is that the threshold for risk goes up imperceptibly for a lot more people. Now how does thinking of startups as market research address the bubble argument?
And no, I'm not a VC.
- rokhayakebe 19y agoThat is what I was saying.Several bloggers and professionals are screaming Bubble because money is being thrown at startups again and there are popping everywhere. My point is that 1-if you understand that the same amount of money is being thrown at consultant to research the feasibility of a market, then you understand that the money is not much, 2-Just because there is lots of startups out there doesn't make it a bubble.There are way more clothing lines, then startups and somehow the market is absorbing. What will happen is the same as in all markets, if your product doesn't offer any added value through (functionality, price...) you will simply end up being dead before you can even close one round. End of your market research there.