Comments on: Do VCs want to build companies, or create returns? http://www.medicinethink.com/do-vcs-want-to-build-companies-or-create-returns/ devise and revise. Sun, 04 Dec 2011 16:39:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: WRM http://www.medicinethink.com/do-vcs-want-to-build-companies-or-create-returns/comment-page-1/#comment-33 WRM Tue, 08 Sep 2009 19:30:21 +0000 http://www.medicinethink.com/?p=57#comment-33 Anyone that borrows money or assets releases control to the proprietor of the capital that is at risk. How the founder can leverage or counteract the 'control' is the challenge. Anyone that borrows money or assets releases control to the proprietor of the capital that is at risk.

How the founder can leverage or counteract the ‘control’ is the challenge.

]]> By: WRM http://www.medicinethink.com/do-vcs-want-to-build-companies-or-create-returns/comment-page-1/#comment-32 WRM Tue, 08 Sep 2009 19:19:40 +0000 http://www.medicinethink.com/?p=57#comment-32 You just made the same statement as I did. It's all about quick profits and managing risk of their money. All about the benjamins, baby. Cash Cow or not in 10 years, they see the return in 5-7 and will not risk the additional amount of time in that orginization; or there is more money that can be made with another group rather than waiting for the the remaining 5-7. They will pull their money because they don't care what happens after that initial 5-7 years. They have made their money and will move on to invest in other opportunities with the greatest return. You just made the same statement as I did. It’s all about quick profits and managing risk of their money. All about the benjamins, baby.

Cash Cow or not in 10 years, they see the return in 5-7 and will not risk the additional amount of time in that orginization; or there is more money that can be made with another group rather than waiting for the the remaining 5-7. They will pull their money because they don’t care what happens after that initial 5-7 years. They have made their money and will move on to invest in other opportunities with the greatest return.

]]> By: admin http://www.medicinethink.com/do-vcs-want-to-build-companies-or-create-returns/comment-page-1/#comment-30 admin Sat, 05 Sep 2009 00:48:27 +0000 http://www.medicinethink.com/?p=57#comment-30 Agreed. But, let's say you can develop a company that's going to be a cash cow, but will require 10-12 years to fully develop. However VCs, because of the type of institutional money they take need 5-7 year turn around - therefore they'll force you out prematurely to get their money out and you as a founder ultimately lose out. Both founders and VCs are about the benjamins, but from slightly different perspectives. Interesting problem for founders. Agreed. But, let’s say you can develop a company that’s going to be a cash cow, but will require 10-12 years to fully develop. However VCs, because of the type of institutional money they take need 5-7 year turn around – therefore they’ll force you out prematurely to get their money out and you as a founder ultimately lose out. Both founders and VCs are about the benjamins, but from slightly different perspectives. Interesting problem for founders.

]]> By: WRM http://www.medicinethink.com/do-vcs-want-to-build-companies-or-create-returns/comment-page-1/#comment-29 WRM Fri, 04 Sep 2009 18:36:25 +0000 http://www.medicinethink.com/?p=57#comment-29 It's all about the benjamins, baby. It’s all about the benjamins, baby.

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