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To: FR1 who wrote (32827)3/9/2001 7:56:51 AM
From: edamo  Respond to of 65232
 
fri...icge, cmgi, any venture group are no different then a high risk lender that does what more conservative lenders will not....their security is ownership in the investments..........in the days of high flying ipo's they quickly recovered their investment with tremendous share price appreciation....most only see one side of the investment, which is the "venture part"....the question is will they still be able to secure the "capital" part, which comes from private investors, who have been burned....without this private funding, a new venture cannot be started, if never started, then no public ipo potential.....investors are only looking at the end(venture) and forgetting the required beginning(private capital investment)

no different then a high interest, high risk auto financing company...as long as the payments are made, tremendous returns are realized...but when the vehicle is repossessed for payment failure, the lender is left holding usually junk(depriciated asset) which can't offset the initial cash outflow for the loan....