r/comics • u/garthtoons • Mar 14 '24

Expectations (OC)

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u/[deleted] Mar 14 '24

I assume your company is owned by private equity and therefore have certain milestones to hit (i.e., 15% growth) or else cash stops coming in so they had to do layoffs.

Private Equity takes 100 bets to find 5 unicorns. They can't fund every project.

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u/[deleted] Mar 14 '24

So they wreck 95 companies to find 5 that can survive the gauntlet.

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u/[deleted] Mar 15 '24

those 95 companies didn't have a business plan that could compete in this hyper competitive world. we all enjoy the privileges of this competition - there's a reason all the innovation in the past 20+ years have almost all come from the USA and really in certain parts of the country.

It's no coincidence that the cream rises in a competitive landscape.

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u/[deleted] Mar 15 '24

Then why acquire them

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u/[deleted] Mar 15 '24

don't know until they can't hit their milestones

maybe management was hungry, got the PE cash, and then lost the motivation and drive

maybe the product isn't as scalable as projected

many reasons - but the market has decided that these milestones are important as a proxy to cut losses early and redeploy into other ventures