I never understood how venture investments worked even though I studied economic science. Let‘s say WeWork for example. If they got 17 billion as an investment and are now bankrupt. Are the owners still rich or broke and blacklisted for future investments idk

Question

I never understood how venture investments worked even though I studied economic science. Let‘s say WeWork for example. If they got 17 billion as an investment and are now bankrupt. Are the owners still rich or broke and blacklisted for future investments idk

In: 755

Answer 1

AFAIK many VCs rely on investing in many private companies where they know most, statistically speaking, will fail, but one investment can earn them so much it’ll cover the losses of every other one. Entrepreneurship is massive risk for massive reward, and the people investing in it know the outcome of most startups. We work lasted longer than the others, so it’s actually not that bad.