News for hackers. Stuff that matters.

A comment on How to proceed when you run out of cash, but you still believe?. Parent comment

Re:How to proceed when you run out of cash, but you still be... by tenpies on Wednesday December 04, 2019 @03:08PM (#21706370)
Not even. I'm seeing seed and series As/Bs on unproven teams of recent graduates with no experience in the field where the "start up" operates. No business plan, no prototype, huge regulatory walls to climb.

It is worst than tulip mania.

[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by nikanj on Wednesday December 04, 2019 @03:56PM (#21706854)
Funds make money on failed investments too. I'd be happy to throw away someone else's money, if I got to keep 20% as a management fee - and a slice of the profits in case one of my lottery tickets is a winner.
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by shagbag on Wednesday December 04, 2019 @07:00PM (#21708502)
Typically they'd get 2% of assets under management, not 20%.
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by zhoujianfu on Wednesday December 04, 2019 @09:01PM (#21709313)
2% a year for 10 years..
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by gnaritas on Wednesday December 04, 2019 @10:33PM (#21709744)
Which is about 18% of the original investment, not 20, assuming no gains or losses.
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by x0x0 on Wednesday December 04, 2019 @06:27PM (#21708302)
Dude. Conflating seed (median $2.1m 18q4) rounds with B (probably 10x that) rounds is... not serious.
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by jiofih on Wednesday December 04, 2019 @10:11PM (#21709646)
Look closer at the news, it’s not uncommon to see 10M+ rounds for companies that haven’t put out a single ounce of product.
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by x0x0 on Wednesday December 04, 2019 @10:18PM (#21709675)
I'm sure you've got a list of 50 or 100 examples handy?
[ Parent | on HN ]
Re:How to proceed when you run out of cash, but you still be... by streetcat1 on Wednesday December 04, 2019 @04:22PM (#21707176)
Where? Can you give an example?
[ Parent | on HN ]