tag:blogger.com,1999:blog-6976144462093297473.post7707246194121411993..comments2024-03-26T19:10:00.791-04:00Comments on West Coast Stat Views (on Observational Epidemiology and more): Venture capital and the growth fetishJosephhttp://www.blogger.com/profile/10760453165301871031noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6976144462093297473.post-73298204951813370202012-03-22T17:21:35.882-04:002012-03-22T17:21:35.882-04:00One thing that I have trouble with talk about tech...One thing that I have trouble with talk about tech companies is the assumption that such businesses have to grow at all costs.Bill Trudohttps://www.blogger.com/profile/12071375710902131635noreply@blogger.comtag:blogger.com,1999:blog-6976144462093297473.post-84336892617218351312012-03-22T16:22:08.190-04:002012-03-22T16:22:08.190-04:00I'm not so sure VCs are making projections to ...I'm not so sure VCs are making projections to maximize company profits. They're making projections to maximize the size of their bank accounts in a set number of years.<br /><br />The tax system also rewards "growth". Dividends are doubly taxed at the corporate and individual level, so it definitely leads to a bias against them.Bill Trudohttps://www.blogger.com/profile/12071375710902131635noreply@blogger.comtag:blogger.com,1999:blog-6976144462093297473.post-61011740630925121422012-03-22T15:37:43.559-04:002012-03-22T15:37:43.559-04:00Oh, I see. Interesting.Oh, I see. Interesting.Davidhttps://www.blogger.com/profile/10565910956857563935noreply@blogger.comtag:blogger.com,1999:blog-6976144462093297473.post-53378158140353585202012-03-22T15:21:27.624-04:002012-03-22T15:21:27.624-04:00David,
Salmon really delves into these issues but...David,<br /><br />Salmon really delves into these issues but for my part, I'm suggesting that the market does have a bias toward certain growth curves and that VCs are capitalizing on that bias.Markhttps://www.blogger.com/profile/14705408455380402571noreply@blogger.comtag:blogger.com,1999:blog-6976144462093297473.post-29499002344471358092012-03-22T14:53:10.983-04:002012-03-22T14:53:10.983-04:00I always figured the VC's are doing a reasonab...I always figured the VC's are doing a reasonable job of trying to maximize the *expected value* of discounted lifetime profits.<br /><br />Given the skewed distribution (mostly failures), maybe that isn't best for founders, I dunno. But it seems like you're going further and suggesting they aren't even doing that?Davidhttps://www.blogger.com/profile/10565910956857563935noreply@blogger.com