Re:GitHub Is Doing Much Better Than Bloomberg Thinks
by gumby on Tuesday December 20, 2016 @02:07PM
(#13222869)
> I read somewhere that VCs don't mind burning cash at GitHub, because the fire helps power the greater Software ecosystem.
That makes no sense at all. No LP would be in favor of paying an "investment tax" which is not broadly paid yet is broadly used. LPs put money into venture firms for higher than average returns. What you describe would make the investor's job harder.
In the Valley (and on HN) the VCs are the BSDs of the money scene. But they need their customers (LPs) and if you go to any LP meetings you'll see that most of the money comes comes from the actual BSDs of PE, hedge funds and pension funds. And since VC is such a tiny part of the financial world, you'll see that the folks that represent the big LPs at those LP meetings are just kids on their first job after an MBA, or even between college and MBA: all they really care about is reporting good returns to their bosses.
That makes no sense at all. No LP would be in favor of paying an "investment tax" which is not broadly paid yet is broadly used. LPs put money into venture firms for higher than average returns. What you describe would make the investor's job harder.
In the Valley (and on HN) the VCs are the BSDs of the money scene. But they need their customers (LPs) and if you go to any LP meetings you'll see that most of the money comes comes from the actual BSDs of PE, hedge funds and pension funds. And since VC is such a tiny part of the financial world, you'll see that the folks that represent the big LPs at those LP meetings are just kids on their first job after an MBA, or even between college and MBA: all they really care about is reporting good returns to their bosses.