Unicorns are setting up their own venture capital funds

From an operations perspective, this is for Business Intelligence and creating a funnel for acquisitions.<p>Venture is one of the best ways to spot trends in your own market(s), and lead run any future competition with an acquisition, new product or product changes.<p>This is one of the major things that distinguishes major 21st century companies today from major companies in the past. If you know all of the up and coming competitors, or an entire new market that could threaten you, you can&#x27;t be disrupted.

A lot of blockchain tech startups raise money and then turn around and invest in other startups.<p>I think we&#x27;re gonna look back at this in 5 years and collectively say, what were we thinking?

No better evidence you’re in a bubble market if the billions flowing into self-driving cars and blockchain didn’t convince you. If investors are willing for their startups to use their capital in this way then there really is just way too much money floating around.

So they&#x27;ve got cash and no ideas? If I were an investor I would be livid.<p>How is this different from blowing your funding round at a blackjack table?

What happens to the unicorn&#x27;s equity stake in a unicorn-backed company if the unicorn itself goes out of business? Does that equity get re-distributed to the unicorn&#x27;s investors?

If you are a VC and one of your investments is doing this then next time why wouldn’t your investors cut out the middleman (i.e. you) and go straight to them?

And people still say dolphins are the second most intelligent species on Earth.

This makes sense when your business strategy requires that you create a vibrant business ecosystem and the current support for these businesses is broken or inadequate. Focus and domain expertise become a competitive advantage and you can reap value from both the fund and the main business by creating value in the ecosystem.

So Silicon Valley’s version of the CDO or better yet and the even worse — synthetic CDO

I didnt think much into this until the start up of a friend(yc backed, if i am not mistaken) failed. They did have their own venture fund to boost up the drone companies, but eventually they shut down.<p>Good thing to look out for.

Big tech companies will do anything to avoid paying out more dividends.

&quot;When beggars and shoeshine boys, barbers and beauticians can tell you how to get rich it is time to remind yourself that there is no more dangerous illusion than the belief that one can get something for nothing.&quot;<p><pre><code> - Bernard Baruch</code></pre>

As long as the money keeps flowing.