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

Blacklisted!? LOL

Shortlisted for new investments, more likely. They have demonstrated that they can grow a business to very big very fast. The fact that it ran afoul of the law and market demand collapsed is just bad luck, right?

I think the founder already has funding for a new venture so go figure.