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

If the company went bankrupt and isn’t bought out by another company, the shareholders lose everything because their shares are worthless.

If you’re talking about the executives who get paid a salary to work in the company, yes they do keep what they got paid.