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Non-Tech : Wit Capital - The way of the future?
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To: ChopChop99 who wrote (4824)6/12/1999 9:48:00 PM
From: bh  Read Replies (2) of 16809
 
Chop-

If we're going to use simple examples to explain the internet stock valuations, here's my theory.

You have a small business that you've run for years making a profit. If you lose money, it's YOUR money that is lost. If you turn a profit, that's your money as well.

For the most part, the people running these internet companies are using OTHER people's money. In the begining, it's the VC's money, for a few rounds of funding. After that, it's the shareholders money from the IPO and a secondary.

It's a lot easier to spend other people's money!
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