Will Thom's prediction come true? Locked

Started Jun 20, 2013 | Discussions thread
This thread is locked.
Truman Prevatt
Truman Prevatt Veteran Member • Posts: 7,830
Re: Will Thom's prediction come true?

Most technology start ups are heavily by venture capital funded.  This is particularly true for a company that is going to build silicon.  Building chips is expensive.  Venture capital firms do not give away money - they normally take ownership in stock for the money.  Along with their money comes requirements for growth and market and for paying back the money.  Venture Capital firms are not in business to build sensors or any other product.  They are in business to make money for their investors.

We don't exactly know what happened to Foveon except they didn't make much in roads in the market.  If they were heavily VC funded, it is perfectly conceivable that they were forced to sell since the VC could have actually have a controlling interest. VC's normally want preferred stock so if the value of the company goes down, so does everyone else stock except the preferred stockholders.  In such a case if a company is having issues meeting their schedules and goals, the company's value could drop which means the common stock value drops, however, since the VC firm owns preferred stock, the VC firm could  end up with controlling interest and take over the running of the company. In such a case the VC would replace the management and come up with a plan as to how to get the maximum amount of money out of the company - which is often selling it off.  I've seen it happen more than once.

Of course there was a ready market for Foveon since Sigma had put all their money on the Foveon horse.  If Sigma had not been around - Foveon probably would probably been a footnote in history.

Truman

Lin Evans wrote:

You certainly have a really strange concept of business success. If I owned a small company manufacturing only ball point pens, I could be wildly successful and retire a multi millionaire and never even make a "blip" on the statistical "pie chart" of world-wide ball point pen sales.

If I'm the major stock-holder of a Fortune 100 company making and selling digital cameras and my ledger is in the red at the end of the fiscal year, my company is a failure for that year.

Assuming that Foveon requires a significant share of the global market for sensors to be "successful" is total foolishness. Bob you "really" need to take some 101 level classes in business.

Best regards,

Lin

-- hide signature --

Truman
www.pbase.com/tprevatt

 Truman Prevatt's gear list:Truman Prevatt's gear list
Fujifilm X-Pro2 Fujifilm X-H1 Fujifilm XF 18mm F2 R Fujifilm XF 35mm F1.4 R Fujifilm XF 56mm F1.2 R +8 more
Post (hide subjects) Posted by
(unknown member)
(unknown member)
(unknown member)
(unknown member)
(unknown member)
(unknown member)
(unknown member)
(unknown member)
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark MMy threads
Color scheme? Blue / Yellow