Rich (white) people need more money

SuperMatt

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I thought we should have a thread about money given to “connected” rich (white) people with dubious business plans who get lots of money from investors.

Sales Pitch:

"Hey everybody, I drew a picture of a supersonic jet. Do you want to pay me billions of dollars for some of them just in case I figure out to make them?"

United Airlines:

peter-griffin.jpg
Okay!


Oh, and here’s the website of the company’s “team”:


Do they even have employees yet? They list: Investors, Business Mentors, Content Specialists, Creators of Marketing assets, Conversion specialists, User experience, Business administration and IT.

I’m sorry - not a single engineer is listed on the website for a company that’s going to build next-gen supersonic jets?

And this is what Venture Capital really is: billions in handouts to semi-rich white guys to make them ultra-rich white guys. And yet right-wingers lose their f-ing minds when there is a college scholarship only for black people.
 

SuperMatt

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Another couple articles about this: only 2% of funded startups in 2020 (between $500K and $20 million) were founded by black entrepreneurs.


Looking at startups whose total funding fell between $500,000 and $20 million, he found 1,383 companies raised a round in the third quarter of 2020, for nearly $5.9 billion in total. Only 31 of those startups, which together raised $114.8 million, had Black founders—about 2 percent.

That’s from Q3 2020. Maybe rich white people people got “woke” in 2021 and started funding more black-founded startups?


In Q1 of 2021, however, out of the 1422 startups that received funding, only 25 were Black-led — a percentage of 1.8%.

Aren’t these Silicon Valley VC folks claiming to be supportive of BLM and against systemic racism? They, more than anybody right now, are making it worse. I’d love to see front page stories on all newspapers about this. Billions being spent to keep wealth away from anybody but white people. Considering there are no actual criteria for distributing VC, they could decide to give all VC money to minority founders starting tomorrow. Their business plans are most likely no different than the ones the VC's white friends’ kids came up with... actually they are probably better since they aren’t relying on mommy and daddy’s connections.
 

lizkat

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In parallel to this we have regular ol' already-behemoth companies now getting all defensive about price hikes for their products and blaming it all on wage increases that "must be passed on to the consumer."

Nice piece in TNR that suggests yo how about passing it on to shareholders and CEOs for a change, just a minor haircut... considering that for a lot of these companies (fast food outfits, big box retail) the federal government for a long time had been underwriting their bottom line due to the workers being paid so poorly they qualified for social safety net benefits. Also all those share buybacks...

 

thekev

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Another couple articles about this: only 2% of funded startups in 2020 (between $500K and $20 million) were founded by black entrepreneurs.




That’s from Q3 2020. Maybe rich white people people got “woke” in 2021 and started funding more black-founded startups?


I'm prone to think these don't matter a lot, because the number of people funded at or past this point is pretty limited in general. There are a couple points where it might help though. If we consider startups in critical spaces like healthcare, that has a greater potential to help Black communities and Black people in general. If a Black CEO ends up with an outlier, this may direct philanthropic efforts and donations toward communities that typically benefit less from them. Other than that, I wonder how much impact this really has. Even for White people (and keep in mind, in the US, White is a census catch all for "other"), we're talking about a tiny percentage of the general population.

Aren’t these Silicon Valley VC folks claiming to be supportive of BLM and against systemic racism? They, more than anybody right now, are making it worse. I’d love to see front page stories on all newspapers about this. Billions being spent to keep wealth away from anybody but white people. Considering there are no actual criteria for distributing VC, they could decide to give all VC money to minority founders starting tomorrow. Their business plans are most likely no different than the ones the VC's white friends’ kids came up with... actually they are probably better since they aren’t relying on mommy and daddy’s connections.

United Airlines:

View attachment 5777

The slight irony here is that the third shade from the bottom would still be under White for any of the statistics we frequently discuss, and depending on where their ancestors are from, the second from the bottom might be as well (although it's straddling the edge).

Also also... article makes the guy sound like a grifter more than anything.
 
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SuperMatt

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I'm prone to think these don't matter a lot, because the number of people funded at or past this point is pretty limited in general. There are a couple points where it might help though. If we consider startups in critical spaces like healthcare, that has a greater potential to help Black communities and Black people in general. If a Black CEO ends up with an outlier, this may direct philanthropic efforts and donations toward communities that typically benefit less from them. Other than that, I wonder how much impact this really has. Even for White people (and keep in mind, in the US, White is a census catch all for "other"), we're talking about a tiny percentage of the general population.



United Airlines:

View attachment 5777

The slight irony here is that the third shade from the bottom would still be under White for any of the statistics we frequently discuss, and depending on where their ancestors are from, the second from the bottom might be as well (although it's straddling the edge).

Also also... article makes the guy sound like a grifter more than anything.
130 billion dollars a year being handed out. I think it matters who it goes to. Why give huge loans to startups at all? Why not give the money to the needy? But consider the fact that banks seldom give big loans to black people... this startup money might be the only chance they get for funding.

Great point on the tiny amount of people. 130 billion dollars a year going to about 2000 startups… oligarchy in action.
 

thekev

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130 billion dollars a year being handed out. I think it matters who it goes to. Why give huge loans to startups at all? Why not give the money to the needy? But consider the fact that banks seldom give big loans to black people... this startup money might be the only chance they get for funding.

Those aren't typically loans. If these guys were handing out loans, they would come with enormous interest rates and may require personal guarantees. Otherwise they're likely (in most cases) to be highly scrutinized on how they spend that. I'm also skeptical as to how many of them can really get funded without a working prototype or in the case of aeronautics, significant design work and R&D. Otherwise we're into the territory of shit that should not actually happen.

Where did you get the 130 billion figure?


Great point on the tiny amount of people. 130 billion dollars a year going to about 2000 startups… oligarchy in action.

I don't disagree. I don't see the 130 figure in any of these. Your article from medium says a little under 14 billion for Q1 2021.
 

SuperMatt

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Those aren't typically loans. If these guys were handing out loans, they would come with enormous interest rates and may require personal guarantees. Otherwise they're likely (in most cases) to be highly scrutinized on how they spend that. I'm also skeptical as to how many of them can really get funded without a working prototype or in the case of aeronautics, significant design work and R&D. Otherwise we're into the territory of shit that should not actually happen.

Where did you get the 130 billion figure?




I don't disagree. I don't see the 130 figure in any of these. Your article from medium says a little under 14 billion for Q1 2021.

Good point… not a loan… free money. It is only my opinion that these VC firms are not giving the money to people with the best ideas. The fact that the money goes so overwhelmingly to white men reinforces my opinion. Other people have good ideas too, but apparently not in the eyes of the people handing out this money.
 

thekev

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Good point… not a loan… free money. It is only my opinion that these VC firms are not giving the money to people with the best ideas. The fact that the money goes so overwhelmingly to white men reinforces my opinion. Other people have good ideas too, but apparently not in the eyes of the people handing out this money.

It shouldn't be based on ideas at all. That's part of where the nonsense comes in. It should require some amount of early actualization and a business plan. Without such things in place, how do really evaluate them at all? As I mentioned though, that money may come with heavy stipulations on how it's spent, or at least it should.
 

SuperMatt

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And the Sackler family was in the news today. Despite selling drugs (they knew were dangerous) that killed half a million people, they face no jail time. They will have to pay a large fine of multiple billions… but:

They are still BILLIONAIRES. This is massively fracked-up. They should have to give it all up.

Oh, and boo-hoo for them: they (temporarily) won‘t be able to put their name on buildings, museums, etc.

 

lizkat

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^^^ Yeah, all the justice that unlimited money can prevent happening.

How they manage to shelter assets enough to pay the raft of lawyers they must have engaged would be interesting to hear about. They must have done it up front when they saw their trainwreck coming.
 

GermanSuplex

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I’m amazed at those who say democrat policies are meant to keep people poor and in need, while they continue to vote for politicians who funnel money to the rich by literal handouts and then obstruct any attempt to help the poor or middle class. It’s infuriating, but conservatives keep their base more concerned with culture wars which they always inevitably lose anyways.
 

lizkat

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I’m amazed at those who say democrat policies are meant to keep people poor and in need, while they continue to vote for politicians who funnel money to the rich by literal handouts and then obstruct any attempt to help the poor or middle class. It’s infuriating, but conservatives keep their base more concerned with culture wars which they always inevitably lose anyways.

I must say though that currently I'm a little amazed at something I read the other day about Cuomo resisting the idea of putting whatever Sackler funds are coming to NYS into a lockbox so the money ends up dedicated to addiction treatment and rehab... apparently the governor was said at least initially to favor it rather going into the general fund. Outrageous. Giant sucking sound, and it would be gone in ten minutes. Anyway legislation was introduced to forestall that idea and the governor did sign it.

 

SuperMatt

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I must say though that currently I'm a little amazed at something I read the other day about Cuomo resisting the idea of putting whatever Sackler funds are coming to NYS into a lockbox so the money ends up dedicated to addiction treatment and rehab... apparently the governor was said at least initially to favor it rather going into the general fund. Outrageous. Giant sucking sound, and it would be gone in ten minutes. Anyway legislation was introduced to forestall that idea and the governor did sign it.

A judge threw out the settlement. Maybe there is a chance they will suffer some true punishment for their deadly crimes.

 
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