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Venture capital could be like a ponzi scheme creating unstable business practices within startups

By Hicbd
Thu Dec 17 2020 11:58 am

"VC’s are in the business of fundraising and allocating capital, not backing sound businesses models. They back business that can spend money, and the quicker they can do it the better for the VC.This means VCs don’t typically back companies that can support their growth with retained earnings as it doesn’t fit their model for growth."

URL:
https://medium.com/swlh/venture-capital-isnt-good-for-us-135855dac1c2
https://www.institutionalinvestor.com/article/b1nlj1gb3g3bbd/The-Pervasive-Head-Scratching-Risk-Exploding-Problem-With-Venture-Capital
https://www.newyorker.com/magazine/2020/01/27/is-venture-capital-worth-the-risk
http://www.gregoryschmidt.ca/writing/the-silicon-valley-ponzi-scheme

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Categories:
Entrepreneurship Financial Systems / Markets Startups Investing / Portfolio Management Institutional Investing / Asset Management Venture Capital Business Research Economic Bubbles / Recessions

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