It's quite amusing that the folks who have been investing in companies at exorbitant valuations and pushing for higher and higher growth as a prerequisite for additional funding are now worried that all the large sums they've aggressively invested are being spent on growth or things that create the appearance of growth. What did they expect?
Comments like "When the market turns, and it will turn, we will find out who has been swimming without trunks on: many high burn rate co's will VAPORIZE" are particularly interesting. The top-tier VC firms always talk about value add and active participation in their portfolio companies, and almost all of them look to have board representation in one form or another. But somehow one of the Valley's most prominent and connected VCs suggests that he doesn't know "who has been swimming without trunks on." Crazy.
you make it sound like all the VCs got together and decided to make this happen. it's instead an artifact of the economic system we have. it's due to humans being involved, but not caused by individual humans.
the car analogy would be the waves of stop-and-go traffic on a congested freeway, which is caused by variances in reaction times of people.
> you make it sound like all the VCs got together and decided to make this happen. it's instead an artifact of the economic system we have. it's due to humans being involved, but not caused by individual humans.
"Your poor returns are an artifact of the economic system we have. The collapse in the value of your investments with our firm is due to humans being involved, but this was not caused by individual humans."
- Every hedge fund manager, mutual fund manager, venture capitalist
> the car analogy would be the waves of stop-and-go traffic on a congested freeway, which is caused by variances in reaction times of people.
I think the pusherman analogy is more apt: he who sells crack gets crackheads.
Comments like "When the market turns, and it will turn, we will find out who has been swimming without trunks on: many high burn rate co's will VAPORIZE" are particularly interesting. The top-tier VC firms always talk about value add and active participation in their portfolio companies, and almost all of them look to have board representation in one form or another. But somehow one of the Valley's most prominent and connected VCs suggests that he doesn't know "who has been swimming without trunks on." Crazy.
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