Question

Comment on “Investors pay for the future; entrepreneurs pay for the past.”

Answer 1

Entrepreneurs are related to the struggle of their past.But, past efforts are sunken costs. They do not describe the investor likeleness to pay.while taking into account the past may help, the main focus of the investor is on the future. What mostly makes a difference is the addition of these past efforts produced a result or brand that has a chance to be the core for the future profits to pay back the investor. Entrepreneur's addition to the project is worth only as much as it adds to the project's capability to build returns for the investors. what is most important is how the past can be used to best pridict the future.