Re:Grand jury indicts Trevor Milton, Nikola founder, on thre...
by xkjkls on Thursday July 29, 2021 @05:25PM
(#28001675)
> it's easier for more people to raise a lot of money for risky endeavors.
Is it easier to raise money for risky endeavors or for "hot" endeavors. I'm not sure this no structure to how a lot of people are now allocating capital is actually contributing anything positive, just pure malinvestment.
AMC is a perfect example. It's a company that raised hundreds of millions at valuations 10x of what it had months ago. Is AMC a "risky investment" we should be allocating capital too? Box office receipts and still down 50% and may never fully recover. Why is AMC a good use of that capital rather than institutions that can replace it completely?
Is it easier to raise money for risky endeavors or for "hot" endeavors. I'm not sure this no structure to how a lot of people are now allocating capital is actually contributing anything positive, just pure malinvestment.
AMC is a perfect example. It's a company that raised hundreds of millions at valuations 10x of what it had months ago. Is AMC a "risky investment" we should be allocating capital too? Box office receipts and still down 50% and may never fully recover. Why is AMC a good use of that capital rather than institutions that can replace it completely?