I can't not jump on this topic band wagon.
"Venture Capital", in the west, is a management structure for dominating all industries. The way the scam works is:
- Have billions of dollars and want to earn more by taking over every industry
- Realize it's prohibitively expensive to hire experts and professional business people to build businesses, in every industry, from the ground up
- Find successful people who have run / sold businesses and tell them they can direct your money and earn some ownership, as VCs
- Tell the VCs to find hard working founders and offer them VC in return for stock and a lot of control over company processes
- Tell founders that "we see the biggest level of success with companies founded by 3 or more founders" (like e.g., Y Combinator does) 6. Tell the VCs to have the founders live a ramen lifestyle while building the company as fast as possible
- Realize you've created a vast network of teams of 3 hard working smart people, all competing to be America's Next Top CEO, at which point some 5% will be reasonably rewarded while their counterparts at the 19 similar startups receive nothing more than their Chinese labor camp level pay and hours
- Continue these steps until you own every industry
Disclaimer: all of this is personal opinion.
You forgot the market manipulation part: they have private valuation rounds where other billionaires get to bid on the value which drives up share price. Because there's never a publicly accessible opportunity to test the value, these inflated valuations can persist as long as the investors are willing to continue to fund the operations.
Yes and each of these people recruits 6-12 managers all working for options which aren't even shared of stock- they're working to earn the option to purchase stock at a fixed price.
True that (re: market manipulation).
Also, that's a fantastic point pertaining the underpaid managers, etc., not to mention the first few dozen employees as well.
Control/monopoly is the ultimate goal.
It also makes it a lot harder for the people who want to start a normal business to compete with those getting VC funding.
Give out the best loans to the VC's that are the most aware of who they answer to and behave accordingly.
Yeah, and blacklist anyone who doesn't play ball the way they want to play ball.
Oh, don't get me wrong; my sequence is just designed to illustrate the high order M.O. that those scumbags rely on, but it's certainly not meant to be an exhaustive list of their evildoings.
Pertaining the hard working though, usually there's one delusional psychopath involved, and that's the CEO, but the CTO and initial devs are usually hard working peeps who fall for either the "we're changing the world" or "we're gonna make billions" trick; both of which are lies most of the time.