705
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 01 Nov 2023
705 points (93.9% liked)
Technology
59689 readers
1593 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
Kind of right but of course it's not just a filter to make sure the right kind of people get funded.
But it is a bet that only matters if it pays 100 or 1000x. If it's not paying that it's as good as 0. That's why, most of the times, vc money does not benefit the company, unless it manages to have that insane level of growth. It's also frequently not in the best interest of the founder.
This right here has been my experience with VC. I was working for an online retail startup when 9/11 happened. Within days, we were all called into the office to be told we were shutting down because the VCs pulled our funding. This despite the fact that we were only two months away from projected profitability and beating our sales projections every single month. But we weren't the biggest paying bet in the casino, so they dumped us when the cash flow got tight.
That would have been a successful company, but it wasn't good enough for the VC class.