Because that's the true "innovation" that has been coming out of Silicon Valley for the past 10 years or so: losing hundreds of millions or billions of dollars for years without as much as a hint of a plan to become profitable.
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.
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Because that's the true "innovation" that has been coming out of Silicon Valley for the past 10 years or so: losing hundreds of millions or billions of dollars for years without as much as a hint of a plan to become profitable.
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.
The zero interest rates make getting loans cheap, but aren’t there angel investors who lose their investments recommended by VCs?
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.
Just yesterday, comments here about SoFi. "They're still a startup and still in pre-profit growth mode".
Uh, they started lending operations in 2011. How long is that pre-profit growth mode expected to last? Another decade?