Nostr Web Client

Something that doesn't get talked about enough - Founders of VC backed startups get TONS of liquidity opportunities when raising new funding rounds.

The time cash out and get rich is WAY sooner than it would otherwise be by trying to go public or convince another company to acquire you.

What this means is that if you get into a field with a ton of hype, where VC money is actively going, you can get rich by delivering a non profitable product and let all the externalities fall on everyone else.

Fiat 🤷‍♂️

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Discussion

BottleTeams 10mo ago

The public markets are so saturated that VC is the only area that money can get a large return on investment. That's why it has become so popular in the past 2 decades.

By the time numerous funding rounds are done and the company has been fully valued the VCs then take it public where the general investing public get the scraps. The public becomes the exit liquidity while the VCs have enjoyed all the upside.

Currency of Distrust 10mo ago

Worse than that, it's not just exit liquidity, it's dumping a company on the public where it isn't even clear that it can ever be profitable!

You dont have to build something that actually works and make money. Just generate a shit ton of hype and put some decent numbers on a sheet. Bam, you're a millionaire

BottleTeams 10mo ago

Yes the current model is growth at any cost, monopolize the market and squeeze all competition out. Once you're the last one standing raise prices. Amazon did this, Uber and Lyft are the last two standing. The battle in food delivery is currently happening. Grubhub, doordash, Uber eats, postmates , go puff. Same game playing out. None of these companies are profitable.

Only possible with unlimited money and cheap interest rates. You can operate at a loss for 15-20 years until you monopolize an industry then you set the prices. Totally guts the economy.