Venture capital investing is never for the faint of heart, it's often really more about gambling than actual investing, especially for early rounds.
The risks inherent in this sort of investing in the technology field are multiplied by several orders of magnitude when you are getting mixed up with a startup in the auto industry.
Building cars in any significant volume is one of most capital intensive business in the world. And that's after you've spent hundreds of millions of dollars just to develop a product.
One of the standard bits of boiler plate in any investment prospective is something to the effect that "past performance is no guarantee of future success."
In the car business it should probably be something along the lines of "past performance of other automakers means that this venture will more than likely fail." Thousands of auto brands have come and gone over the last 125 years, and anyone putting money into a startup with big performance promises based on amazing new technology should probably be prepared up front to say goodbye to their cash.
#venturecapital #fiskerkarma #fiskerautomotive
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Irate Investor Sues Fisker: A Little Lesson In Venture Capital
This is the week when driving impressions of the 2012 Fisker Karma have started to appear, as Fisker invites in waves of automotive journalists for a half-day of driving in and around Los Angeles. (We…
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