DerpyPenguin
DerpyPenguin

How come all these startups get funding in hundreds of millions?

Most of the startups are in loss and have no clue whether they would be able to make it to IPO, I've always been wondering how come so they get the funding in hundreds of millions?

Even though the early investors seek to make money off the next funding round but still!

It looks like a 21st century's quick rich scheme for founders!

17mo ago
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DizzyWaffle
DizzyWaffle

Most of VC ecosystem in India is a club anyways

DerpyPenguin
DerpyPenguin

Club means?

DizzyWaffle
DizzyWaffle

They all know each other, most are mentally corrupt and circlejerkers

SwirlyTaco
SwirlyTaco

Because for a VC even if 1 or 2 out 10 startups go for IPO then then will make good returns.

DizzyWaffle
DizzyWaffle

Nops, honestly it is almost impossible for a Vc to make money. Read the records, historically less than 1% money is returned back to LP.
The bigger the fund, harder to return.
It should be very hard to get funded by VC, they are not meant for most of us, but then when you see how poor the complete portfolio of the so-called VCs are, it's as good as throwing a dart and winning.
But most heartburn is usually when you see this game rigged.
But honestly, most rigged game founders never make money.

JumpyBanana
JumpyBanana

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