11/15/2018
It is fair to say, that subprime styled VC has been responsible for the death of many innovative start-ups. Not every business model can scale revenue and market share beyond a standard business profile (8% - 12% steady EBITDA). This does not make them bad business models.
Greed and fear kill a lot of impactful business potential globally. Throwing staff at a business problem, does not produce meteoric results. It creates productivity issues and chaos.
RedPepper Mergers and Scarab Funds always aim to stand between hardnose VC money and investees, to permit the investee to focus on real impact and realistic growth. We want aspirational but realistic targets (with more acceptable risk curves) which we know we will achieve, not the pressure of the self-deception that brought the RealtyShare's investor / investee partnership unstuck.
RealtyShare's business failed because it was bloated on overhead, headcount and operational expense. It did NOT fail as a platform proposition – founded in 2013, the business raised more than $870 million for more than 1,160 real estate projects. This averages $800K+ per offering which supports the conservative nature of 's financial projections, needing no more than 11 staff.
http://bit.ly/2TfOAsQ
Real estate crowdfunding company RealtyShares is set to lay off the vast majority of its staff and faces an uncertain future following a failed attemp
