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Why don't VC invest in Intl Logistics Companies
I am always baffled, why don't VC invest in International Logistics companies, which are insanely profitable everywhere. I am not talking about Carriers, instead, the 3rd Party logistics companies like us. They are not only profitable, but they also grow like weed. Everytime I see, a random social app, generating tens of millions, I become sad. Because the social app in question, would barely make any tangible profit in any foreseeable future.
Where as in our industry a medium sized company with $1-$5 Million funding can easily pay back the entire investment in 10-15 years. Which one can further invest to open offices in other countries such as China, I don't even need to mention, how much potential China holds for the freight industry.
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- sharemywin 13y agoWhy would some one want to invest in something where they only get their money back in 10-15 years? sequoia capital turned 58M(8M in 2011 and 50M in 2013) into >$2 billion in whatsapp and 1.5B was made with the 8M.
- frade33 13y agoYep that's right. How much profit does whatasapp make? Even God doesn't have any clue. Would they ever make profit, your guess is as good as mine. The point you laid out is valid. However it's capitalism at its worst. By the way how many social apps get acquired for $1b or $19 billions ;) Most of them are a trap for VC, it's just few get lucky. It's a musical chair game but in the reverse order. Where your job is to put another VC in your place while you exit.