• ‘I Will Not Be a Part of the Charade Anymore.' Why a Facebook Millionaire and Tech Investor Is Getting Out of the Startup ‘Ponzi Scheme'

    2 monthes ago - By Fortune

    Investor Chamath Palihapitiya , founder of Social Capital, called the growth-focused startup scene “an enormous multivariate kind of Ponzi scheme,” yesterday at the Launch Scale conference in San Francisco, CNBC reports .
    Many startups engage in what they call “growth hacking” to boost early user numbers, inspiring investor confidence and capture market share. The venture capital model, in which managers seek to return investments on a seven to 10-year timeframe, may also reward unsustainable early growth that will not outlast the VC cycle.
    “I will not be a part of the charade anymore...At...
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