You know investors are a shrewd bunch. It is not easy making money out from them. It is like squeezing money out from rock or selling a fridge to an Eskimo. However, there is one loophole, and as human, we all have that weakness (some more than others) – Greed.
You make money from investor by promising them more money. However, you just ‘accidentally’ forgot to tell them how much you are making out of it.
Venture Capital and Startups
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Chris Sacca on The Power of Incentives (read here)
This was Sacca’s very honest assessment of the risk-reward trade-off for both investors and those running the funds (emphasis mine):
This is a rigged game, right? And I’m just looking to make it even more rigged. For those who don’t know, venture capital is totally unfair. I mean, people give me their money; I draw a management fee off it, so they …