Re:Attorneys say Elizabeth Holmes isn’t paying them
by TrackerFF on Saturday October 05, 2019 @08:18AM
(#21165090)
IMO, it boils down to greed and stupid-ish money. VC in itself is inherently risky business, and everyone involved know that it's a 1 in every XX funded startup success story.
Because you have wildly successful companies like FANG, investors get all crazy and irrational when they see startups with the momentum and PR like Theranos had. Even if they're tech or scientific literate, they may suspend their disbelief, just in case the startup is a financial hit.
I have little sympathy for investors that decide to invest in things thy don't know about, but eve less for investors that knowingly invest in unsound tech, just for a big IPO payout - but then cry fraud when it all falls apart.
The "fake it till you make it" image is unfortunately needed to get the big bucks. In order to get funded, you need to act as if you're going to change the world, and convince investors that your product is going to be one of the leading, if not _the_ leading products in the market - doesn't mater if your startup is legit or bogus.
This culture unfortunately makes it easy for fraudsters to blend in - but they're just playing the game as designed.
It boils down to investors wanting 100x - 1000x returns on relatively small investments. And you don't get that kinds of returns unless the company / startup is of national or global size. To tackle and grow something to that size, you need to convince someone that you're capable of doing so.
No-one invests in people that appear to be doubting or lacking confidence. They root for young "super genius" founders that tick off all the right boxes
Because you have wildly successful companies like FANG, investors get all crazy and irrational when they see startups with the momentum and PR like Theranos had. Even if they're tech or scientific literate, they may suspend their disbelief, just in case the startup is a financial hit.
I have little sympathy for investors that decide to invest in things thy don't know about, but eve less for investors that knowingly invest in unsound tech, just for a big IPO payout - but then cry fraud when it all falls apart.
The "fake it till you make it" image is unfortunately needed to get the big bucks. In order to get funded, you need to act as if you're going to change the world, and convince investors that your product is going to be one of the leading, if not _the_ leading products in the market - doesn't mater if your startup is legit or bogus.
This culture unfortunately makes it easy for fraudsters to blend in - but they're just playing the game as designed.
It boils down to investors wanting 100x - 1000x returns on relatively small investments. And you don't get that kinds of returns unless the company / startup is of national or global size. To tackle and grow something to that size, you need to convince someone that you're capable of doing so.
No-one invests in people that appear to be doubting or lacking confidence. They root for young "super genius" founders that tick off all the right boxes