VC’s Are Destructive Predators

It's good for founders to be ambitious, but they shouldn't be reckless.

Some VCs will try to "foie gras" dollars into promising startups. They're happy to leave 19 "craters" in the ground for the chance to back one Stripe.

But each of those "craters" is someone's career!

— Joseph Flaherty (@josephflaherty) July 22, 2020

Venture Capitalists are unnecessary for the most part and are extraordinarily destructive of startups. They try to get startups that should be working through their business model to perfect it to instead supersize their current model. This usually destroys the original new business and the lives of the founders and employees associated with it.

Private Equity investors are even worse than venture capitalists; instead of destroying fledgling businesses, they destroy great existing companies. Sears, Toys R Us, and a very long list of other companies have been destroyed by PE. Their core model destroys companies by using huge amounts of debt to buy a company, then stealing as much of it as they can in the form of bonuses and self dealing, then selling the broken bones that remain before anyone else realizes the business is dead.

https://www.bloomberg.com/news/articles/2019-07-24/private-equity-has-killed-600-000-u-s-retail-jobs-study-sayshttps://www.bloomberg.com/news/articles/2019-07-24/private-equity-has-killed-600-000-u-s-retail-jobs-study-says

from Hacker News https://ift.tt/2ZPpma8