
Venture capitalists circa 2032 - sharemywin
https://medium.com/@bethanymarz/venture-capitalists-circa-2032-810e47fb4ca4
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sharemywin
“Great,” I’d reply. “So as a venture capital firm, I could give you $1 million
to start your sneaker company. And maybe, in 10 years, your company grows so
big that Nike wants to buy you for $10 million. Once that happens, you would
make $8 million for selling your company, and we would make $2 million for
helping you start it. Make sense?”

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sharemywin
Imagine how great VC would be if the numbers worked out that way.

Instead of once you've worked out most of the kinks and started hiring an
awesome team we come in and give $1m, then dilute your position continually
until you own about 18% so you need to create a $1B company to make the
numbers work. Because unfortunately it works out only about 1 out 500 times
and most of the time you end up broke.

Kid: Oh so you run a lottery.

