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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 replies8 likes

Replies (6)

Anonymous 2

Hey I am on Medial • 1y

VC funds get it from LPs

1 replies

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

0 replies1 like

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.

0 replies1 like

Somnath dhindhe

The new era begins • 2m

investor should invest there money in the formula of payment day

0 replies

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