color.com app
Out of context: Reply #14
- Started
- Last post
- 14 Responses
- Boz0
nothing.. it's not an individual borrowing money.. it's the company.. so when company flops the risk with it was something that investors carry.
The problem is that in majority of the cases your reputation as an entrepreneur is somewhat affected. So it might make it harder for you to get money later..but then again if you are well known startup guy and have proven success and this fails it's nothing really..
The bigger problem is that there is more and more stupid ideas like this getting a lot of funding.. and when they start failing the investments will dry up, just like it happened during the 90s dot-com bust. You see, if it was, investor giving money to only 1 person, it wouldn't be a big deal, but a lot of the angel investors and venture funds borrow huge amounts of money to many different startups.. they have full portfolio of companies.
Even though, many entrepreneurs don't take salaries or they take very little salaries when they start a company and get funding from venture companies, some, as in 90s, are basically taking huge salaries, bonuses and similar during the development of the platform.. they take that money and put it on their personal accounts naturally..that's why you see when they refer to 90s dot-com bust, 18 year olds driving ferraris and similar.. that's all investor money..
So when company fails, they just walk away, in the overall scheme of things, as you can see from color app, 41 million is TREMENDOUS amount of money.. it's insane and I'm almost positive that everyone involved with that company is milking that shit like crazy..
This is what concerns me really.. I can tell you right now, it has NEVER been easier to get investment money.. you are doing anything remotely interesting with social, content distribution or just like publishing apps you will get $500k to a $1 mill easy.