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167 points lemonlym | 5 comments | | HN request time: 0.001s | source
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JCM9 ◴[] No.45052162[source]
VCs were literally pitching to startups to take their money during the pandemic (there were several articles about that at the time). That nonsense will now come home to roost as companies that took money at those hyper-inflated valuations will now need to face reality.

LPs that let their money get tied up in such nonsense are also about to head into a world of pain. I fear the present AI bubble will only exacerbate the pain as both sets of bad investment decisions come crashing down around the same time.

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1. CalRobert ◴[] No.45052505[source]
Geeze, I had a product with real users and a path to monetisation and I got ignored… is it because I was in Europe?
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2. JCM9 ◴[] No.45052619[source]
Yes
3. barbazoo ◴[] No.45052657[source]
> and I got ignored

Socializing our losses here, aren’t we? If it works out you did it, if it doesn’t, it’s the others that didn’t see the value :)

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4. PhantomHour ◴[] No.45054002[source]
In part it'll be Europe, though VC in the "throw money into a fire" style does/did exist.

But VCs, especially in those days, bordered on antipathy for sensible business plans. They didn't want small businesses that would turn profitable quickly and grow sustainably. They wanted something with infinite growth ASAP that they could pump-and-dump on Big Tech or IPO suckers.

5. CalRobert ◴[] No.45054553[source]
Hah, fair enough! Also you’re more likely to hear about startups that get funded vs not.