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0 pointsFirmwareBurner2y ago0 comments

Sounds like a pump and dump with extra steps. Hype up any obvious future failure to pump the stock to crazy valuations, then dump and leave the suckers holding the bags. All enabled by zero interest rates, and VCs were willing to fund some because they knew there's gonna be other suckers out there to enable them to raise the valuations.

0 comments

jjtheblunt2y ago

The zero interest rates make getting loans cheap, but aren’t there angel investors who lose their investments recommended by VCs?

rchaud2y ago

The angel investor has the same approach as VCs: if 1 out of 10 companies in the portfolio do well, that's enough.

VCs do however get a fee for assets under management, so they win even if their investors lose.

j / k navigate · click thread line to collapse

0 pointsFirmwareBurner2y ago0 comments

0 comments

jjtheblunt2y ago

The zero interest rates make getting loans cheap, but aren’t there angel investors who lose their investments recommended by VCs?

rchaud2y ago

The angel investor has the same approach as VCs: if 1 out of 10 companies in the portfolio do well, that's enough.

VCs do however get a fee for assets under management, so they win even if their investors lose.

j / k navigate · click thread line to collapse