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Anonymous

Hey I am on Medial • 1y

Investors are investing money in start-ups and start-up fails or not making profit, they are again investing in start-ups and start-up fails or not making profit. So the question is if start-up not making money then how investors earn money. I know that they are investigating money in start-up by predicting that start-up will be profitable in future, but what about today, how they will earn money.

6 Replies

Replies (6)

Anonymous 2

Hey I am on Medial • 1y

VC funds get it from LPs

1 Reply

Sajin
•

Foundation • 1y

Investors makes money when they exit in the upcoming rounds at higher startup valuation. They dont make money from startup's profits. And as of failure, there are ways investors try to get their money back, like pivoting and changing strategies etc. Btw investors do not invest in one company alone. They invest in a series of companies. Out of 10, if 8 companies fail, 2 will make 10x-20x returns

Anonymous 1

Hey I am on Medial • 1y

Investors are ( generally Angels) are previously founders (for eg kunal shah) He sold freecharge for about Millions and now he is an angel investor. Now take your example do you put all of your salary on stocks? No, right? Same for them.

Somnath dhindhe

The new era begins • 5m

investor should invest there money in the formula of payment day

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Zoheb Arif

— em dash • 1y

Anyone here an angel investor? Would love to hear about your successful exits/fails in investing with start-ups.

4 Replies

Rupesh Tiwari

In the Business of S... • 4m

Why are every Start-Ups running after Funding? They can build a business like Zerodha. Do business on your money and become profitable. Investors will pressure you to get their money back and many start ups have failed after getting money.

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Account Deleted

Hey I am on Medial • 28d

for every start up founders tend to put focus on profit scale or we can call it as margin of profit but most start up fails in this theory. 1. quality of products or service with good supply chain. 2. Marketing and promotion but more than 15 perc

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Do you know how much your business is really making? 🤔 Understanding the profit formula is crucial! This chart breaks down the key components. Let's talk profit in the comments! 👇 #profit #finance #business #accounting #money #investing #financial