In the full disclosure of "I do business"
but with a hefty caveat:
"the scale of my business is running through a rich neighborhood with an ice cream push cart while being chased by the private security guards as Yakety Sax plays on my off-brand boombox"
and a promise to offer something useful at the end of this ramble
I can add (what I hope) is useful and/or interesting flavor to all of the above, which is true.
Venture capital pours money into things like they are trying to water kelp at the bottom of the ocean because:
- 1 out of every 10 will make a stupid amount of money because the stock will briefly go intensely high and they can lend their shares and/or use them as collateral to raise money to do something else
- 1 out of every 25 things will make a stupid amount of money for a one-time payout as they cash out before the business explodes
- 1 out of every 50 or so will make a stupid amount of money because the business succeeds
- Things that fail, brutally, still yield useful things (chunks of code, equipment, talented employees, etc) in almost all cases
It is dumb and frustrating.
I refute the "move fast and break things" mentality and I type that and realize I'm in danger of veering off my point.
I'm not trying to counter anything said above (I agree with all of it) but wanted to give a context.
I don't like threads of "rich people are doing dumb things" -- this is incomplete
I would counter with: "rich people are doing dumb things that are still making them richer because the system is rigged to pay them at the very least a small profit and more resources."
And now because I promised something useful: If you have professional skills, use this all in your favor.
When I had my design firm, when a new client knocked on the door, I would assess them for risk -- financial and cultural as it related to my firm, which was... an odd... firm.
(sotto voce: anyone surprised?)
Part of that cultural assessment being "how likely are you to collapse as a client and take us down with you." Startups got extra points immediately in this category.
If you offer professional services, demand better terms (i.e. more $) from startups if they are not backed up by someone cashing out a 401k or retirement or a life's savings -- if they have investors, you need to quietly introduce a new fee structure.
Consider it a secret premium menu.
It might even be worth it to have a second 'division' of your company.
My design firm had two entrances to clients -- if you were a bar keeper who wanted to do a book about your favorite sports team, you'd come through the entrance where I painted our mascot destroying the city.
If you were a global digital {yadda yadda} you went through an agent who took a fee so we could borrow their door and paid an increased fee because you were objectively riskier and could afford it.
all of this conveniently ending with the even GROSSER truth:
Any company that you invest in making money is good, but also, if it forces your competitor to lose more money than you, that's fine too, this actually might be better for you in certain ways
it's all terrible and thats why I draw / write gay monsters now