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.
There's multiple rounds of funding. Each round creates artificial scarcity and artificial hype both of which drive up the bid. If they auction 10% of the equity for $25 million now all the sudden it's worth $250 million (25/0.1). Then because there's no public price discovery outside of these auctions, the price remains artificially inflated until it either runs out of capital or until it goes public. So a common metric is "months of cover" with is basically how much longer they can keep going with t convincing more people to fund them.
It seems there is no public price discovery at all. All of these prices are artificially inflated to unimaginable levels. Uber valuation is $100 Billion!! Whatsapp at another $100 Billion!!
What is basically a mobile app is apparently worth 10 Gotthard Base Tunnels! Which took 20 years to build. I wonder for how long they can keep this going.
Yeah the price discovery occurs as a probability function. Only a small percentage are allowed to maintain such values and all the rest implode. For the ones they don't implode, the system is designed to offer run away valuations due to this lack of correcting market forces. What's even wilder to me is the public companies they get such valuations- take zoom for instance