Mastodawn

mcc Nov 21, 2022

Here is the thing you have to understand about VCs (and therefore, companies and websites that have accepted VC money), always and forever. Repeat it like a mantra.

--- Venture capitalists do not invest in the company. Venture capitalists invest in the exit. ---

Eventually any site, app whatever has a Sell Out Moment. They get bought by a big established corp, they go IPO, something. There is an "Exit". If you accept VC money, you are *promising* that Exit day is coming and it will be *big*.

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Dark Sage Torunka

@mcc There's a (mostly unrelated, but still interesting) corollary for publishing.

For example, if you're pitching a book to a publisher, they're not "investing" in the book. They're buying a franchise.

The current landscape of book publishing is littered with two-book trilogies whose publishers both refuse to pay for the sequel but hold onto the rights as cheaply as they can because more gold for the dragon to sleep on at night.