Venture Capital is poison. Here’s why: When you take VC, the investors invest in the sale of your company. That’s called the exit. That’s when they profit. So either your company fails or it sells (either to the public via an IPO or to another company). There’s no third option.
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* A few companies might manage to avoid the exit by buying out their investors or due to sheer luck (ask the FastMail folks for their story over a beer sometime) or try to postpone it (see Automattic) but that’s not statistically significant/not how the system’s designed to work.
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Instead of this shortsighted, greed-driven, Vegas-style system, we can do things sustainably in Europe. Let’s invest not in disposable Startups but in Stayups—companies without equity that cannot sell, where the return is share of revenue/profit. Let’s get rid of exits.
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