It’s because the Sequoia investors and funds and VCs were applying a pattern that actually sort of works for software onto a financial services company.
If you’re building consumer facing software like a social network or app, and you have massive wild growth, you have a money printing machine in progress.
It’s pretty straightforward to get there with a seed of blind luck and some sweaty immature skilled tech guys from top schools who have literally no fucking idea how to actually run a company.
Everyone has seen that before. It works out. You invest the money they use it to hire people who know how to run a business and you win. You have no internal controls or systems for awhile and some accounts get nuked and there’s a breach or two and it doesn’t matter it’s a photo sharing website.
Then you apply that logic to healthcare or financial services and they make a Netflix mini series about just how much of a fucking moron yoi were for not understanding those are fundamentally different business models.
If you’re building consumer facing software like a social network or app, and you have massive wild growth, you have a money printing machine in progress.
It’s pretty straightforward to get there with a seed of blind luck and some sweaty immature skilled tech guys from top schools who have literally no fucking idea how to actually run a company.
Everyone has seen that before. It works out. You invest the money they use it to hire people who know how to run a business and you win. You have no internal controls or systems for awhile and some accounts get nuked and there’s a breach or two and it doesn’t matter it’s a photo sharing website.
Then you apply that logic to healthcare or financial services and they make a Netflix mini series about just how much of a fucking moron yoi were for not understanding those are fundamentally different business models.