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Anonymous

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

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Sajin

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Foundation • 11m

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

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Any idea. How will they make money ?

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