An expert who studies venture capital says the WeWork 'smackdown' won't change the way the industry works — but he's telling investors how they can avoid the same mistake
, it's possible that venture capital firms will briefly shy away from some of the risky-looking startups, Gordon said. But the lure of backing a giant winner is going to be too strong for permanent change to set in.
"When a company is able to convince the VC world that it's the next hot one that you must be in to look like a real VC, we'll see the same thing over again. Because VCs can't resist," he said. But he adds that investors don't have behave that way — and if their goal is building wealth and not getting in on a hot investment, they really shouldn't.
"The risk in the first week of trading is going to be gigantic, and are you going to get rewarded?" he asked. "You don't have to jump into a company on the first day or two that it's public.", Gordon said, a focus on the longer term is safer and will help investors succeed. "If you think it's a really good company, you think it's going to turn into a big investment, a good investment like
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