Finance the Right Way
You can’t get rich from a successful financing experience unless you are taking the money from investors in bad faith. The only way you can get rich is from the profits generated from the effective application of the capital you raise.
It is shocking how many people in the “dot-com era” raised large amounts of capital to operate their vague, mathematically questionable ideas. Some “business leaders” ended up with easy, luxurious lifestyles as a result from raising a lot of capital.They would pay themselves in salary or bonuses, or sell their own stock shares prior to their company reaching profitability; or buy services from their “friends’” companies but finance them internally; or surreptitiously buy billions of dollars of services from their pals who would reciprocate—all to add revenue and hype for their Wall Street IPO appearances.
Nevertheless, what they failed to recognize, or possibly care about, is that sometimes they had done nothing of any value for their shareholders or customers. In fact, the opposite was often happening. Good money was going into companies to theoretically serve as a seed investment in order to develop a quality service platform, but instead, it indirectly went to finance the lifestyles of the recipients.
After having managed a successful and profitable operation, selling out your interests is an entirely different story from raising investment capital. Selling a long-term company with accelerating profits should indeed make you wealthy and enhance your lifestyle significantly. But one should not get rich from seed capital, as what used to occur frequently in the early years of Internet frenzy.
