Private Companies Are Safer Than Public Co’s!
So you have a choice where to invest your money. You can buy shares in Citi or Goldman, which have a chance of going down to zero or could go up a few points or you can invest in a private company (startup) that can go down to zero but you have a shot at a 3X, 5X, 10X, 100X return. What makes more sense?
In our twisted economy, startups are safer. Almost All investments these day have the same BETA (risk factor). Almost all big companies rely on commercial paper and short term financing to survive. If they can’t borrow they die. That is actually riskier than a funded startup that at least has 12 months to live.
And returns have more potential with startups…a hot startup beats a 10% annualized return…
Think about it…
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