How would you answer the following question? Finance bros

01-13-2021, 12:46 PM

-

#1

notbadnotbrad

notbadnotbrad

Join Date: Jul 2012

Posts: 39,818

Subscribers: 3

Rep Power: 346827

How would you answer the following question? Finance bros

Have an investor relations interview for a venture capital firm - one of the questions to prepare for

- the company I invested in went bankrupt. Are you kidding me?

01-13-2021, 12:49 PM

-

#2

Lefticle
Registered User

Lefticle
Registered User

Join Date: Jan 2011

Height: 6'1"

Weight: 225 lbs

Posts: 29,430

Subscribers: 1

Rep Power: 571788

Talk about how risk/reward is a real thing. Deflect to the returns on their account. If it's still over 10%, bring up the fact that you're outperforming the S&P 500 and the risk/reward is paying off.

If the return on their account is less than the S&P 5000, then they should probably fire you.

Always Neg Back Crew.

01-13-2021, 12:53 PM

-

#3

notbadnotbrad

notbadnotbrad

Join Date: Jul 2012

Posts: 39,818

Subscribers: 3

Rep Power: 346827

Originally Posted By Lefticle⏩

Talk about how risk/reward is a real thing. Deflect to the returns on their account. If it's still over 10%, bring up the fact that you're outperforming the S&P 500 and the risk/reward is paying off.

If the return on their account is less than the S&P 5000, then they should probably fire you.

This is good - thanks brah

Would rep but have given out too many in the past 24h

01-13-2021, 12:57 PM

-

#4

eatmycrackers
lol @ nocoincels; 118 IQ

eatmycrackers
lol @ nocoincels; 118 IQ

Join Date: Aug 2012

Location: United States

Posts: 8,772

Rep Power: 37689

Seems a bit silly for a VC investor to whine about BK. VCs are getting into 10 companies hoping 1 takes off and pays for all of the losses.

Just take investment returns into account (as said above) point this investor to the overall annual returns vs market or vs other VCs. Hopefully you are in the top quartile so not as much to fear

Also You can’t point to traditional S&P market returns since VCs take on extra risk they need to be paid appropriately

Posts are for fun, not to be taken seriously or as truth.

Angie Varona Appreciation Club Founder

01-13-2021, 01:01 PM

-

#5

japzz
The CableFly Effect

japzz
The CableFly Effect

Join Date: Dec 2011

Posts: 2,203

Rep Power: 9273

Yup go talk about risk/reward ratio. That in an efficient market the higher expected return is inherent to a larger risk of default. And that you knew up front that this was a risky investment but the disproportionally high expected return justified the investment at the time you invested

But don't listen to me I studied finance and now get cucked in accountancy. What did I do. Passed daytrader math tests was in final selection process and didn't push for that lul

Oh and GL man.