• enkers
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    10 months ago

    Correct. R&D only creates future value. Usually in the VC model, R&D is done by individuals or small groups and then funded (bought) by VC to get it to market. So even though the R&D do-er can cash out their future profits for immediate profits, the value of that R&D can’t be realized immediately.

    I personally think the VC and legacy models are currently competing, and VC is winning out. As we see here, even large, established companies aren’t immune to impinging VCs.