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I am not personally a fan of Patreon but this analysis is weird. They took VC instead of a bank loan because they were too risky for a bank to give them a loan. The VCs are demanding higher returns because they have to cover the losses of all the startups that *didn’t* succeed.
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I don't want to be doom and gloom, but Patreon is about to eat itself. Or, more specifically, the investors who demand geometric growth are about to demand Patreon eat itself. cnbc.com/2019/01/23/cro
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A steelman version of the argument is that Patreon is perhaps a business that should be bootstrapped or not built at all because it creates messed up incentives all around if built with OPM.
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That’s VC math. One company always dominates the returns for the entire portfolio. So anything less than Patreon becoming that one huge winner is a failure in the eyes of the VC.
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Couldn't ..they...um...use their own platform to fund their own platform, tho? Taking all of that VC $ seems so ill advised when their service is an alternative to just that. Obvi dissonance sandwich, anyone?
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