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Their business model assumes most of their investment doesn't take off, with a few rock stars that make up for the losses. Incidentally, which is one reason ca

by Elite 16y ago

Their business model assumes most of their investment doesn't take off, with a few rock stars that make up for the losses. Incidentally, which is one reason cash flow positive startups should really think before accepting VC money. VC's are happy with a 10% success rate. You on the other hand, need a 100% success rate. Interests are not wholly aligned.

jiganti 16y ago
So you're saying that the founders should be wary that VC's aren't as risk-averse in this sense?
- swombat 16y ago
  No, he's saying the VCs are much less risk-averse.
  - itblarg 16y ago
    Agreed 100%. VCs aren't in the risk game. They're in the risk-mitigation game.
    - anamax 16y ago
      In addition to risk-mitigation, VCs are also in the "find things that are much less risky than they appear" game.
- po 16y ago
  VC's are diversified… you aren't.