posts
prefsUse the Capital's Tendency to Your Own Advantage
Some notes from Pete Quinones Show episode 11071:
01:20:58# --
You make your money on the ride up. I don't care if the company is big already, because there's not much money to be made left in there. Example: TikTok's growth has been parabolic for the last 5 years or so. In contrast, Google's has been fairly flat. So, as an investor, putting money into companies, I am not much interested in investing Google. Instead, I am more interested in new companies with the growth potential.
And it is here, something valuable to understand: this tendency of investors, the VC managers, etc., is to the advantage of a certain type of startup founder. Which type? The type that incorporates new technique and technologies into a presentable product that targets some initially small but albeit grow-able customer segment. It is this tendency, the wish to catch the ride up from small to big in part of the investors, that allow new startups with new products to come forth, to be born out of the primordial ooze of their founders' cortical fluid.
The founders of tech startups should take great advantage of this tendency of the investors.
Furthermore, the podcast guest puts forward, "a big company, a billion dollar company, has nowhere else to go." That might sound gloomy and doomy, however, at that point the founders and the initial employees of that company will (should) have made their fortunes, and have taken their parts of their "fuck you moneys." As in the examples of Google's founders, or Facebook's first 1000 employees, even though these companies are probably at their growth limit and are stagnant, their founders and their initial employees have "made it." And guess what, as the investor money isn't motivated to flow into these companies no more, this presents opportunities for that same money to flow into the new crop of entrepreneurs' startups. Some of these capital flow make some new and successful companies and along the way, provide a new crop of "well-made", wealthy people out of the entrepreneurs and initial employees. Such is the productive and wealth-generative cycle of capital. And such should be your way to grow powerful, prestigious and affluent, as a young and budding man with a chip on his shoulder.
Also part of the idea-space of Ofansif Kapital.
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