this post was submitted on 01 Nov 2023
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Hey tech billionaires, if you want to talk about radical change, let’s abolish venture capitalism (www.theguardian.com)
submitted 1 year ago by [email protected] to c/[email protected]
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Do you support sustainability, social responsibility, tech ethics, or trust and safety? Congratulations, you’re an enemy of progress. That’s according to the venture capitalist Marc Andreessen.

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[–] [email protected] 10 points 1 year ago* (last edited 1 year ago) (1 children)

Venture capital isn't "loaning money" though. The structure of the deal is fundamentally different from the terms you'd get from the bank. The bank wants principal + interest. VC wants people in your boardroom and a share of the company itself.

IDK if this difference seems subtle, but it's massive when it comes to the outcome of any company that currently makes a decent product and then gets tainted by the VC poison.

And yes, I agree that a standard loan is perfectly okay. Without that share of the company on the table, the lender can't steer the company off a cliff to increase its profits.