Exactly. They know it is a giant ponzi scheme as we have seen with SVB collapsing right in front of their faces, throwing millions on unprofitable startups which 90% of them will never make it to the finish line and it was never sustainable and they knew it. A perfect example of a ZIRP (zero interest rate phenomenon) with decades long cheap money fuelling it.
To them, they see your startup as a vehicle for an IPO to dump all over retail investors at an inflated price, which is why they need to keep raising money every month.
If it works out, on to the next one. If it doesn't then either they force you out of your own company an drive an acquisition to prevent the loss of their own money or accept the loss and never to meet the founders again.
Exactly. They know it is a giant ponzi scheme as we have seen with SVB collapsing right in front of their faces, throwing millions on unprofitable startups which 90% of them will never make it to the finish line and it was never sustainable and they knew it. A perfect example of a ZIRP (zero interest rate phenomenon) with decades long cheap money fuelling it.
To them, they see your startup as a vehicle for an IPO to dump all over retail investors at an inflated price, which is why they need to keep raising money every month.
If it works out, on to the next one. If it doesn't then either they force you out of your own company an drive an acquisition to prevent the loss of their own money or accept the loss and never to meet the founders again.