Contrarian VCs: Investing in Failing E-Commerce Startups
from the a-different-point-of-view dept
I tend to like contrarian points of view, as I believe that the popular viewpoint is often an exaggerated one that only looks at extremes and ignores the real issues. That’s why I think it’s especially interesting that there are some VC firms that now claim they are going to specialize in funding startups that normal VCs won’t touch: failing e-commerce sites. I think they might have some real potential here. If they can find the jewels that everyone else is ignoring, they’ll be able to get in at a good valuation, and benefit when the firms do well. However, there may be a problem as much of a VCs returns come from success in the public markets, and the public markets are notoriously subject to the prevailing popular viewpoints of the day.