I once hung out with my good friend and his VC coworkers. We tailgated a football game and I spent 2 hours watching the most self-righteous pig-headed dbags abuse every substance on earth. I ended up just walking away with no warning.
Modern venture capitalists are not the same as traditional investors. Both want to make profit off their investments, but where traditional investors are ones who are typically aiming at long term investments where they'd get consistent dividends, venture capitalist investors are looking to aggressively buy into an industry to grab control of it and maximize their short term gains, often at the expense of the public and traditional investors.
A traditional (knowledgeable) investor looks at AI as a potential for profits decades out, but get concerned about how the valuation does not match the profitability.
A venture capitalist looks at AI as a potential ponzi scheme where they make bank on their initial investment by selling shares of a sinking ship to stooges that don't see what's under the hood.
They literally just provide operating capital. Your premise assumes they plan for the companies they provide millions of dollars to to fail when they would gain immense more profit from a company growing until it sells for a high return.
Very rarely do VCs hold stakes in the companies after they go public, even if successful. Their entire business is just hyping things up just till they start attracting institutional funding, then ride to the exit before it falls.
When you simplify it like that it doesn't sound bad at all, but that's obviously not the reality. Venture capitalists are some of the worst groups of people actively destroying our society and planet. Come on, man.
I really don't have to since I'm not debating you, but sure.
Venture capital can negatively impact the economy and society by prioritizing hyper-maximalist growth and short-term market dominance over sustainable value.
And the means they use to maximize growth are, in many cases, immoral as fuck. Look up anything about Blackrock or Palantir. Happy searching.
When you simplify it like that it doesn't sound bad at all, but that's obviously not the reality.
That was a debate. You literally are saying I have the wrong interpretation of reality.
Venture capital can negatively impact the economy and society by prioritizing hyper-maximalist growth and short-term market dominance over sustainable value.
Extremely broad statement that can be applied speciously to absolutely anything.
And the means they use to maximize growth are, in many cases, immoral as fuck. Look up anything about Blackrock or Palantir. Happy searching.
Old company got bought out by a VC and they were like "Nothing is going to change guys! We bought it because we love it for what it is! Insert corporate jargon and empty platitudes."
50% of the business wasn't actually related to anything they cared about. 70/100 employees were laid off in under 18 months (including ~20 from their own industry side).
You don’t have to defend venture capitalist. They are doing a great job of exploiting and wringing every penny out of businesses before they move along already.
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u/motorboatmycheeks 6h ago
I like that at the end the one laughing the hardest is the vc. Like yeahh yall fucked