They thought they were joining an accelerator – instead they lost their startups

Re:They thought they were joining an accelerator – instead t... by rdlecler1 on Friday May 03, 2024 @01:48AM (#40244504)

You don’t seem to understand basic economics. When you get on a bus and pay for your ticket, is the rest of the ride a free ride?

VCs are running a business too. Most VCs fail to return the capital to their LPs. That’s right, then spend 10 years of their life working with startups and have nothing at the end. They take RISK and they try to DERISK their investment by helping the portfolio company.

There’s also a LOT of stories where a VC invests a LOT of money only for the company to get recapped. The founders are given (some say rewarded) with new equity with the VC is wiped out. In many cases a founder will exit handsomely and the early VCs who came in end up with nothing. That’s the risk.

VC is simple but it’s not easy.

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Re:They thought they were joining an accelerator – instead t... by CPLX on Friday May 03, 2024 @05:31AM (#40245779)

> then spend 10 years of their life working with startups and have nothing at the end

How do they avoid starving to death after the first few days?

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Re:They thought they were joining an accelerator – instead t... by kevindamm on Friday May 03, 2024 @07:50AM (#40246589)

I imagine they spend money to consume food... after which, both food and money are gone.

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Re:They thought they were joining an accelerator – instead t... by CPLX on Friday May 03, 2024 @08:04AM (#40246726)

What money? I thought there was no reason to be a VC?

Or do they get paid? Is it a lot?

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Re:They thought they were joining an accelerator – instead t... by whitten on Saturday May 04, 2024 @08:11PM (#40261368)

Yes. There is a lot of money to be made in VC. Look at "exit strategy" for more info.

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