alt Hacker NewsIf you'll humor a cheeky substitution:
> No, your VC investors don't give a damn what you deliver. They only care about the valuation. Lie if you have to. Hype up your project like it's the greatest thing in the world. Do whatever to enable security fraud.
People are quite good at recognizing this dynamic amongst crypto startups.
Yet they pretend it's not the driving force in both the VC world and Big Tech.
Replies
oofbey • today at 4:14 PM
Clever comparison, but the key difference is there’s no mechanism for a rug pull for most startups. Unless they reach a huge valuation, the stock is absolutely not liquid. There’s no way to cash out.
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Not the same because VCs can only make money when the startup gets acquired by a bigger company or by IPO. Both of them will require professional due diligence. So it's far harder to fool investors than crypto which prey on the least sophisticated investors.