VC as Pedigree

from the the-new-world dept

Dan Gillmor has an interesting article in the San Jose Merc where he talks about startups who tout their investors instead of their company. This, of course, has been going on for a long time. However, later on in the column he makes a very interesting point: venture capitalists used to invest in risky ventures. Now, however, the real “risk investments” are undertaken by public equities investors. Before a company can prove that it is viable or not, it goes public, and the people left holding the bag for failed companies is not the supposedly risk loving venture capitalists, but the investors in the public markets.

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