No More Lost Decades
Bryce Roberts
2.5K17

I guess the problem with that is the VC money is looking for insane growth, no steady returns. I just took a small company that just folded up to a few people that would be a reliable profitable business in year 2. It needed about 10 million up front to grow to a 50 million within 10 years. Clear exits available. What I got back was unless it could be pitched at a HALF A BILLION no one was interested and to go to traditional banks, mezzanine debt, or trying to issue bonds. Paying doubt digit intrest is going to kill any traditional manufacturer off at the start. The 50X threshold that is tossed around is just nuts. I get the whole ‘most will fail’ but it means allot of profitable ‘regular’ companies just don’t get off the ground unless you find another person who is driven by dividends, rather then a hypothetical portfolio size. Your grouping looks like a bunch of small bets on 50X returns. I get manufacturing isn’t sexy, but gezz it builds bikes and skis and houses and lights everything, and it dose it will making a small stable profit and giving people a steady employment so they don’t have to jump from gig to gig. Anyways, until big money see a value in stable returns again profitability is going to be an after thought.

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