Free ride? I'll say

Started May 4, 2002 | Discussions thread
JoePhoto Veteran Member • Posts: 6,916
Re: VC versus the Consumer

DCsince89 wrote:

DCsince89 wrote:
The interesting thing about your comments of innovative companies
is that most CANNOT get funding from the VC's (Venture
Capitalists). If they have a product or technology that competes
with MS or an area that MS has expressed interest, VC's won't touch
them because they know that they'll never see a return on their
investment; MS will end-up crushing the company or buying them for
pennies on the dollar.

Silicon Junkie© wrote:
Venture capitalists have nothing to do with whether or not a
product is successful. If a competitor has a promising product,
and consumers like the product, then consumers will buy the
product. There are plenty of VC firms who will invest in companies
and/or products regardless of whether they will have to compete
with Microsoft or not. The very nature of venture capital is risk,
so IMHO, your argument doesn't hold much water.



You've obviously never played with VC's or understand that part of
the industry. Unless a company has it own private funding, NONE of
the Sand Hill Road VC's will touch a competing product or service
against MS... no matter how good or promising it is. Most of the
East Coast VC's shy away from companies competing w/MS because it
becomes a need for a never ending money pit they've tried before
and always lose.

The very nature of VC may be risk, but if it's calculated 100%
you'll lose... they don't play.

I agree. In many ways .. VC's are not much differnt from a bank. They can't exist to just "blindly" throw money at everyone that asks; (God Knows I Would Get-In-Line If They Did).

They have to determine degree of risk ... and what might be the ultimate payoff .... when going against ... the RISK is the "ultimate" ... and there has NEVER been a "payoff" !!! (except to BILL GATES as he laughs all the way to the bank)

-- hide signature --

Thanks for reading .... JoePhoto

( Do You Ever STOP to THINK --- and FORGET to START Again ??? )

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