( taken from the article about the project)
why don't you make your own startup and earn a couple thousand x on it, if you're so cool?
We are so cool not because we know how to make startups, but because in certain types of start-ups we have learned how to quickly find reproducible and scalable business models and build processes that lead to interest from professional investors. It is more profitable for us to sell the share to the founder and avoid future risks. The profit from each such transaction is not very high, but we control the risk, and several iterations per year give good overall profitability indicators.
All markets are falling now, the startup financing market has also shrunk.
It all depends on what stage you are at. For example, in the first six months of this year, the volume of sales of startups and initial public offerings of shares — the main ways to return money to investors — fell by 88%, to $ 49 billion, compared with a year ago (source).
And now look at the statistics on earlier stages of financing, for example here. Funding for seed rounds increased by 11% compared to last year. Against the background of the general downturn, our business is in a large and growing segment of the market. We are confident that as soon as all markets start to turn around, our segment will start to grow faster than others.
Why don't you use bank loans? They are much cheaper.
We use it, but within the available limits.
What are you raising money for?
Like any startup, we attract money for scaling. The attraction will consist of several stages, each of which will have maximum limits that we are ready to use. Over time, we may disclose information about the limits. Perhaps there will be additional plans for a specific startup project that we will conduct publicly.
My most favorite question
Are you paying interest at the expense of new investors?
Yes, that's how any business works. Early investors expect that their share in the company will increase significantly over time, and they will be able to sell this share to other investors who are aimed at making a profit from the company's activities in the future. As a rule, the presence of interest indicates the presence of risks and the higher the yield, the greater the risk. That is why some banks can give a yield of 8% per annum.
Despite falling markets and reduced funding, the trend for startups is growing. In certain circles, it has become no longer fashionable to talk about cryptocurrencies in their portfolios. Serious guys are measured by what companies they have invested in and how many x's they have raised on this. There are three things that people will never stop doing — eating, drinking and investing the money they earn.
Unfortunately, investments are the only way for many to increase the cost of their working hours.
