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by nmalaguti 1199 days ago
Why not let the market sort it out? Maybe these startups need to take a down round, or be acquired for a fraction of their value?

Maybe the VCs should step in and make bridge loans available if they want to keep their investments? If you believe in your portfolio, why not help them weather the storm? Or are you afraid to be exposed to additional risk? Should the taxpayers take on that risk instead?
2 comments
muzz 1199 days ago
Indeed, VCs bridge startups all the time. There are other mechanisms available also-- hedge funds are willing to pay 80 cents on the dollar for these deposits (indicating that they expect to recover more than that)
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haiti_outlaw 1199 days ago
> Why not let the market sort it out? Maybe these startups need to take a down round, or be acquired for a fraction of their value?

This is actually the right answer. Something something founders deserve their money because they take on all the risk.

Well, since we all love capitalism and meritocracy so damn much, let's see those at play for once, shall we?

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