Re:Elizabeth Holmes urged employees to hide Theranos’ lab eq...
by exogeny on Wednesday September 29, 2021 @01:25PM
(#28696956)
MagicLeap, Groupon, Nikola, WeWork, Uber..
A company doesn't have to have an exit for early investors to get out. You just need to find a sucker to buy into a round later than you.
How to do that, in the modern context, is pretty clear. Either do it through outright fraud (Theranos, Nikola, MagicLeap), extreme FOMO (MagicLeap), or raising so much that you crush competition despite comically bad fundamentals and never get to unit-profitability (Uber, others).
A company doesn't have to have an exit for early investors to get out. You just need to find a sucker to buy into a round later than you.
How to do that, in the modern context, is pretty clear. Either do it through outright fraud (Theranos, Nikola, MagicLeap), extreme FOMO (MagicLeap), or raising so much that you crush competition despite comically bad fundamentals and never get to unit-profitability (Uber, others).