Venture Grifters, anyone here knows how it works?

posted 1 year ago by turtlebam 1 year ago by turtlebam +14 / -1

Venture capital, how do they manage to keep the scams going?

Are these venture funds really profitable? I hardly doubt it. I know of many who really do not have any sound business models yet they keep the scam going, with rounds of investments.

From what I was able to put together at the moment:

-Venture capitalism is about directing innovation into the direction Jewish Israelis desire. (if you do what they like to do, such as surveillance, vaccines etc.. you get the money, but if you want clean energy, cancer cure, etc.. you won't get the money)

-Control monopolies, with venture capitalism they make sure whatever new market dominating businesses are all under their control.

-Circular investments and directing the money to their other investments and companies. A lot of these entrepreneurs/start ups end up doing "rapid growth" which means giving a lot of money to Google/Meta/etc.. to put up advertisements.

But still, seeing all these failed business, or what should be a failed business like Uber/Tesla etc.. still going and seeing those major investment funds like Sequoia Capital making profits does not add up.

How do they fidget the numbers, who pays the tap eventually for all of these scams or maybe I am missing something. Anyone with any info? Thx.

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– factdigger 3 points 1 year ago +3 / -0

There are plenty of books and studies available how VC works. Summarizing and simplifying (several stages of VC, all which have different entry/exit/profit strategies):

Find a team around which you can build a story
Buy a major minority stake at miniscule $ investment
Narrate a story around the team and it's invention and hype it up via media
See 2nd level VC want to get a cut of the action. Sell a minor minority for higher $ investment to them (i.e. dilute and upcharge)
Continue 3-4 for a few rounds
Take it to IPO stage, fleece the institutional investors and private individual investors who are now paying 10000x for a 1/100000 of a cut (compared to initial VC stages)
Sell 90% your remaining initial ownerships with 100000x profit
If by random occurrence it looks like a viable business that could grow 100-1000x, keep a minor stake in it, until you can sell it for another 100 - 1000x more compared to IPO price
Expect that 9/10 of your initial VC investments never get to stage 8, but fold before that, so be ready / willing to cash out long before that by selling to more stupid investors
If you have something really special and the Gov/NSA/CIA/etc call you up, take all the money & keep your ownership & try to nail a 7-9 figure confidential/exclusive contract with government and milk it until your "innovation" is commodized.

Rinse and repeat.

Of course there are fake VC startup scams and gov VC stuff that is just made to look legit, although its an integral part of the deep state surveillance-spying network. Israel excels in the latter.