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Incentives and outcomes

“Show me the incentives and I’ll show you the outcomes” - Charlie Munger. I haven’t yet found a profound statement to describe everything that happens commercially across the globe. Share your examples how incentives are misaligned with outcomes that you would expect so we can think deeper. Let me start off - 1. Relationship managers advising you to buy financial products that have high commission vs what’s appropriate for you. 2. Insurance agent / broker selling you policies with high commission with poor returns or missold benefits. 3. Doctors advising you to get a surgery when it may not be really needed. 4. Pharma companies potentially not finding cures when they keep you hooked lifelong on their drugs? 💀 These are some things I have wondered about. What about other examples?

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Indian Startups on

by Kamlesh

Stealth

Disingenuous behaviour in startup ecosystem

Something I've found very frustrating while pitching to investors, platforms and funds is that so many of them actually just bait and switch. They pose like gyani people earnestly looking for investments or helping entrepreneurs, but when you speak to them they start selling you their services. Fundraise is apparently just a step away, need to signup here first, or create xyz report first, or do outreach to xyz number of people, or do market research and fresh pitch deck creation, or hire xyz consultant/agency to get to the "next level" - basically a bunch of barriers you need to pay to clear despite having a profitable business with paying customers. Fact of the matter is there are plenty of people raising money based off of pitch decks with no MVP , or even just the right conversations with the right people. But they are rare and hard to find organically. Requires lots of networking and connecting dots over months and years. The point is, this selling in the guise of securing investment is tiresome and a waste of time for most entrepreneurs. They probably do get a few suckers occasionally which helps them stay afloat I guess. Some of them might even take your ideas and start building something of their own or back someone to build it under them. Once you start pitching, the deck starts floating around in VC groups and networks mostly beyond the reach of the average entrepreneur. Considering all this, just keeping one's head down and bootstrapping forever in peace seems like a better approach.