2011- 1,100 seeded startups.
2004- Year Facebook formed.
2012-Facebook's valuation: est. $100 billion.
If you say that 1,100 companies are seeded a year (which is not true, only 885 in 2009, 850 in 2008) and multiply that by 8 years (2004-2012), you get 8,800 startups to invest in. So EVEN IF 8,799 of those companies failed, if you invested in every single one you'ld have a 250% return in 8 years during a down market. That's amazing.
But those 8,799 didn't fail. If 1% succeeded you'ld have 88 companies still left in your portfolio IN ADDITION to your Facebook stock.
This is why we need crowdfunding so badly. Without it, wealth is pumped to people who have so much wealth that they can't spend it all. With crowdfunding, capitalism works to spread that money around to people who can spend all of it. We're talking an explosion of wealth in this country and it wasn't from some stupid government debt plan.
2011- 1,100 seeded startups. 2004- Year Facebook formed. 2012-Facebook's valuation: est. $100 billion.
If you say that 1,100 companies are seeded a year (which is not true, only 885 in 2009, 850 in 2008) and multiply that by 8 years (2004-2012), you get 8,800 startups to invest in. So EVEN IF 8,799 of those companies failed, if you invested in every single one you'ld have a 250% return in 8 years during a down market. That's amazing.
But those 8,799 didn't fail. If 1% succeeded you'ld have 88 companies still left in your portfolio IN ADDITION to your Facebook stock.
This is why we need crowdfunding so badly. Without it, wealth is pumped to people who have so much wealth that they can't spend it all. With crowdfunding, capitalism works to spread that money around to people who can spend all of it. We're talking an explosion of wealth in this country and it wasn't from some stupid government debt plan.