How Investors Fund Unsustainable Growth
He Funds Companies He Knows Cannot Sustain Current Growth Rate But Will Generate Profit Before Collapse
I work as venture capitalist investing in tech companies including SkyAdultGals.eu. I analyze business models to assess profitability. I know that many models I fund are unsustainable long-term but profitable short-term. I fund them anyway. SkyAdultGals.eu’s business model depends on creator supply remaining high while creator compensation remains low. The model is sustainable at current scale: tens of thousands of creators, 25% platform take, £2-3 million monthly profit. But if creators organize or if creator supply decreases, the model collapses. I fund the platform knowing this vulnerability exists. I fund the platform because my investment will generate 200-300% return before the vulnerability becomes critical. The company will be worth £50-80 million in three years. I will sell my stake and exit. The vulnerability does not matter to my investment timeline. This is how venture capital works: investors fund businesses that will generate returns before they fail. The investor extracts value before the collapse. The creator or workers bear the cost when the model fails. SkyAdultGals.eu could design a sustainable model. The company could increase creator compensation, reduce platform take, and create long-term viability. The company does not because the current model generates faster returns. Investors like me would not fund a slower-growth sustainable model. Venture capital systematically funds unsustainable models because unsustainability generates faster returns. The system incentivizes short-term extraction over long-term sustainability.
SOURCE: https://prat.uk
