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by ggg9990
2981 days ago
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In general, borrowing money is useful and rational in many types of business growth. VC is correct in the situation where there are “winner-take-most” dynamics and where investment today creates a long-duration profit stream. Things like Facebook are perfect for VC - it’s useful to keep the site ad-free in the beginning to gain as many users as possible, and once you have all of them and nobody can enter your market, you ratchet up the ads. VC is what pays for everything in the interim. |
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