Jarhead
Gold Member
- Jan 11, 2010
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I think everyone who got bought out, downsized and outsourced are pretty familiar with what venture capitalists do. The American people are all too familiar with their methods. They are not a net benefit to society no matter how you spin it.
So, in other words, you have no ideda what venture capitalists do and, instead you opt to believe that the small percentage of failure stories are the norm for venture capitalists.
Hmmm...I wonder why venture capitalism is so common if it is more often than not a failure.
Our manufacturing base in ruins is proof enough that these people have no interest in any American job. If they create jobs they are in foreign countries, if they save an American job it is at the cost of wages and benefits. If they are indeed "job creators" then they suck at their task, at least as far as America is concerned.
So as I said, you have no idea what venture capitalists do.
Let me give you a hint...a business owner does not sell off a majority share of his/her company to a venture capitalist if it is doing well...
Instead, he sells off for a multiple of anywhere from 4-7 times net margin to an investor who will not make any changes to the existing business plan...becuase it is already doing well.
Venture capitalists do not pay 4-7 times of net margin for a company...for it will take years to reap the ROI making it worth it for their investors.
So venture capitalsts buy into firms that are doing poorly and likely shutting down resulting in 100% loss of jobs anyway.......
Now...take it from there.....and maybe you can have a better understanding.