Writings

Venture Capital, Startups, Recoup Investment

 by Marc Caccavale

Capital investment in start-ups comes with strings. These strings are designed to get returns for investors as quickly as possible. This fact prioritizes short term expedient priorities over long term requirements necessary for quality, endurance and long term growth. Often, investment strings include installation of executives and overseers that do not have the specific knowledge and expertise necessary that founders envisioned to be realized.

What is the logic in this approach? On one hand, someone or group invests money and wants a return on it. Nothing unreasonable about that. On the other hand, short term gain at the expense of long term and scalable gain is often costly and results in losses rather than profit. Think about it.