3 ms·
I'm curious to see what factors will drive their investment decisions. Typical "exit oriented" investors are taking very high risk for high reward. This signif
by dwightgunning 12y ago
I'm curious to see what factors will drive their investment decisions. Typical "exit oriented" investors are taking very high risk for high reward.
This significantly changes the potential upside ROI although it is probably still interesting to some investors. It's cheaper/faster to start up nowadays but there is also far more people doing it. So what I don't see is how they tangibly reduce the risk of failure?
- xg 12y agoI think the biggest qualification factor of a cash flow positive business mitigates quite a bit of risk (as long as there's some minimum bar of >= $50k / year). The part that's tough is: what's the use of raising additional capital? Is it to go full time on the product? Is it for marketing?
- deleted 12y ago[deleted]
- dwightgunning 12y agoPositive cash flow is a great indicator although with early-stage companies that haven't achieved meaningful scale or been in the game very long it still seems a tricky sell. That said I like the idea and hope the model proves success for people. Sidenote: is $50k/year a generally accepted figure or were you just demonstrating the point?