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>> "We made the deadly mistake of thinking of MetaMed as a business that was trying to turn a profit and grow organically, rather than a start-up whose ‘profits
by increment_i 11y ago
>> "We made the deadly mistake of thinking of MetaMed as a business that was trying to turn a profit and grow organically, rather than a start-up whose ‘profits’ would come from selling its stock to investors at a higher price. Even in the explicit context of a profitable case, this was still true."
When the author explains that the goal of the startup is to profit through selling its shares at ever higher prices, it seems like he's basically saying the entire industry is a giant game of Find the Greater Fool.
I'm sure I'm missing something though.
- MCRed 11y agoYou're not missing anything. It's kind of intrinsic to the system-- when you have VC that wants really high rates of growth then they will require/force the startup to take a path that may be much higher risk but also much higher reward. When you are building a business, you have to make decisions that keep you alive. In the process you may have less likelihood of becoming unicorn but much higher likelihood of surviving. EG: I think VCs want you to take a 1 in 10,000 chance at being a billion dollar company, vs a 1 in 1 chance of being a $100M company.