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A new model for donations: tip now, pay later (tipjoy.com startup)

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app103:
The problem with VC funding is that it is an investment and the investor(s) are going to want a big return on their money within a certain period of time. If you can't do that, you end up having to shut down like TipJoy, or sell out like Friendfeed, iLike, and all the other startups that were bought up by bigger companies.

And if you think the founders get to keep the big wads of cash they get when they sell out, you are sadly mistaken, They only get a portion and the rest goes to the VC firms that invested in them.

The way DC does things isn't profit driven, looking to make investors or the founder into a millionaire.

DC was not founded on greed. That is the biggest difference between this site and one like TipJoy.

And that is why DC is still here.

mouser:
yeah it's a good point and one that financial-idiots like me always seem to forget.  vc (venture capital) funding isn't a gift -- it's an investment by people who expect to either make the money back double or else own you like marbles for their playground games.

J-Mac:
Don't worry - if ever I come into that kind of money, I'll fund you with no expectation of returns, mouse-man! Heck, what would I do with it, other than blow it anyway...   :)

Jim

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