Why do we lose common sense when it comes to successful founders?
Of late, with Koo shutting down, Unacademy in the rafters, I've seen really intelligent, logical folks stand behind the founders of such moronic companies. Is the act of building shit, money burning companies with no use , more important than not building something in today's time?
Qwerty2398
Stealth
2 months ago
Nobody invests based on logic. Investment is based on "greater fool theory". But you dont talk about this in open. It doesn't suit to talk the truth when you travel business class and wearing suit/tie in Indian summer. So people make up shit like growing economy, bulging middle class, consumption story.. etc
People invest hoping they can find a bigger fool willing to buy the same shares a higher price in the future.
Qwerty2398
Stealth
2 months ago
and of course there i flow of money too. If people with deep wallets believe that money will flow into as there is no better alternative for the time being. This is the reason, when inflation plateaus, FED rate peaks and Start up funding evaporates. and after the first rate cut, equity markets tank and startup funding ceases. Money now moves into Bond market to lock in funds at highest risk fee rate.
AdeptFowl5
Stealth
2 months ago
VCs don't know how to predict if a startup is worth investing in so they look for markers to somehow predict it. If it's a second time founder, they think the founder will be able to succeed, no matter what. And they go gaga and invest. I think that's what happened with Koo.
Flaneur
Stealth
2 months ago
P.S - not looking for Winston Churchill quote as the explanation
MightyLazyGeekStar
Stealth
2 months ago
Nothing comes easy especially building from scratch. VCs invest a lot of times based on the founders credentials. Also you never know how acceptable a product can be to the masses.
LooseGoose
Stealth
2 months ago
Everyone knows everyone. No one wants to say the obvious truth in public. Drama create hoga, plus investors might get miffed.
AdeptFowl5
Stealth
2 months ago
Founder Market Fit is thrown out of the window as soon as it's a second time founder. đ
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