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Re:Don't Take VC Funding – It Will Destroy Your Company by wolf550e on Sunday July 09, 2023 @02:29PM (#36657404)
Can you please share a link about understanding "what's going on and learn to read the room"? For real-estate and venture capital.
Re:Don't Take VC Funding – It Will Destroy Your Company by tptacek on Sunday July 09, 2023 @11:26PM (#36661705)
I just mean, a real estate agent wants the transaction to happen and shifts in price that make a big difference to you make almost no difference to them, and a VC partner is going to fund one company in a whole year, is mostly concerned about missing out on the one company that 15x's, and will take as much optionality as is on offer.
Re:Don't Take VC Funding – It Will Destroy Your Company by csomar on Monday July 10, 2023 @01:32AM (#36662479)
For real-estate, assuming you are the seller: Let's say you bought a house with $500K and now looking to sell it. The real-estate agent finds a buyer for $550K. That's a $50K profit for you. The real-estate agent could work a little bit harder and find you are $600K buyer. That's a 100% gain for you. However, the agent is getting paid a fixed percentage of the total sale. For him, it's only a 9% increase; and that does not justify the extra-work.

The incentives are highly not aligned.

If you do not understand that, you'd be disappointed. If you do understand that, you'll see where your agent is coming from.