Agreed. But, let’s say you can develop a company that’s going to be a cash cow, but will require 10-12 years to fully develop. However VCs, because of the type of institutional money they take need 5-7 year turn around – therefore they’ll force you out prematurely to get their money out and you as a founder ultimately lose out. Both founders and VCs are about the benjamins, but from slightly different perspectives. Interesting problem for founders.
You just made the same statement as I did. It’s all about quick profits and managing risk of their money. All about the benjamins, baby.
Cash Cow or not in 10 years, they see the return in 5-7 and will not risk the additional amount of time in that orginization; or there is more money that can be made with another group rather than waiting for the the remaining 5-7. They will pull their money because they don’t care what happens after that initial 5-7 years. They have made their money and will move on to invest in other opportunities with the greatest return.
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It’s all about the benjamins, baby.
Agreed. But, let’s say you can develop a company that’s going to be a cash cow, but will require 10-12 years to fully develop. However VCs, because of the type of institutional money they take need 5-7 year turn around – therefore they’ll force you out prematurely to get their money out and you as a founder ultimately lose out. Both founders and VCs are about the benjamins, but from slightly different perspectives. Interesting problem for founders.
You just made the same statement as I did. It’s all about quick profits and managing risk of their money. All about the benjamins, baby.
Cash Cow or not in 10 years, they see the return in 5-7 and will not risk the additional amount of time in that orginization; or there is more money that can be made with another group rather than waiting for the the remaining 5-7. They will pull their money because they don’t care what happens after that initial 5-7 years. They have made their money and will move on to invest in other opportunities with the greatest return.
Anyone that borrows money or assets releases control to the proprietor of the capital that is at risk.
How the founder can leverage or counteract the ‘control’ is the challenge.