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A comment on Pessimistic Thoughts on Startups. Parent comment

Re:Pessimistic Thoughts on Startups by jimhi on Thursday February 23, 2023 @09:09AM (#34910761)
As someone who has gone through y combinator twice (I recall it just starting to become cool the first time), this problems solves itself right?

They’ll run out of money in 2-3 years if it’s not working.

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Re:Pessimistic Thoughts on Startups by athinggoingon on Thursday February 23, 2023 @10:32AM (#34911845)
>> They’ll run out of money in 2-3 years if it’s not working.

No. They won't run out of money in 2-3 years, they IPO. Or at least, they did in a zero-interest rate environment.

"VCs pay the angels. PE pays the VCs. IBs pay the PEs. All for the hope of an IPO so the market will pay the IBs."

"The entire market ecology has a tough time adapting to the end of cheap (even free) money, with cash flow, rather than "valuation" being the central focus. Those who entered finance after 2008 are, basically, unskilled labor. Lehman in 2008 was a picnic compared to 2000 if you were doing tech related ventures."

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