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
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The owners are the shareholders. They lose most (or pretty much all) of the investment. Most relatively smart shareholders (including the founders) probably didn’t invest ALL their wealth into the company. So they lose what they invested and retain what they didn’t invest.
Unless they are accused of some crime or another, they are probably not legally prevented from future investment. Put it this way, if you bought some Wework stock and held it when they went bankrupt, it doesn’t mean you can’t invest in another company. The reputation of the founders and CEO probably took a beating so they may find it difficult to start up companies in the future but it is far from a blacklist.
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