If you're going to ask someone to invest in you and they want the best possible return then that's exactly the response one would expect. Scalability and repeatability are the keys to success.
-
-
Replying to @Jakewk
Hmm, not necessarily. It depends on the risk they're willing to take. If they wanted the best *guaranteed* return on the pizza shop, a modest profit in the local community is best. But if they're willing to take big risks, yes, they'd ask it to scale way up.
2 replies 0 retweets 0 likes -
Replying to @sehurlburt @Jakewk
You can see this reflected in bank loans. A bank is totally willing to lend out money to pizza shops not looking to be national chains, VCs think more in terms of "invest in a lot and hope one blows up huge and it's okay if the rest fail" than banks do
1 reply 0 retweets 1 like -
Replying to @sehurlburt @Jakewk
And there isn't a great middle ground option for fundraising for companies that have a good path to modest returns with relatively little risk. In general, that profile gets you rejected instantly, but that means there's $ left on the table by investors.
2 replies 1 retweet 2 likes -
Is there a way to measure the failure rate of said modest return businesses? It's hard to gauge the risk unless someone is keeping stats on them. I'd love to know.
2 replies 0 retweets 0 likes -
Approximately 75% of VC-backed companies do not return investors money:https://www.wsj.com/articles/SB10000872396390443720204578004980476429190?mg=prod/accounts-wsj …
1 reply 0 retweets 1 like -
I was asking for the failure rate of non-VC-backed, moderate return tech companies of the type
@sehurlburt and@wifelette run. Seems like it would be hard to measure1 reply 0 retweets 1 like -
Replying to @bradurani @Jakewk and
It's more interesting to understand the ROI for a plausible investment. All companies "fail" eventually.
1 reply 0 retweets 0 likes -
By that measure, then I guess I'm asking for (but not expecting to find) what percentage of such businesses fail without yielding a positive ROI
2 replies 0 retweets 0 likes -
Replying to @bradurani @wycats and
If they've taken no external investment, I guess the investment is measured as the opportunity cost of the salaries the founders have forgone
1 reply 0 retweets 1 like
I'd expect positive ROI is pretty good (at least from my own experience) but it seems real tough to measure.
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.