[ganeumann]

There's definitely adverse selection bias. The companies that can raise the money from a good investor will raise the money and pay for the video. The ones that can't will take the video. Sandwich only gets equity in the companies that can't sell their equity to someone who's a professional equity buyer.

I saw this dynamic in the 90s. My portfolio had several of the top web design firms. They were amazing at what they did. But they saw some of their clients become multi-billion dollar companies and decided they wanted equity instead of cash. Some clients agreed, others did not.

Of the dozens of companies they got equity in, instead of being paid cash, all of them failed. That is, every single one went to zero.