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The 31-year-old CEO of startup Outcome Health stepped down just 8 months after raising $500 million

By Business Insider

It's been a rocky year for Outcome Health, a Chicago-based healthcare startup that sets up screens that provide educational health footage alongside advertisements from pharmaceutical companies toRead full story

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  • Stories like these make me wonder about the state of VC funding. Quick money to young founders tastes like Eve’s apple. It’s turned would-be entrepreneurs into nothing more than fundraisers and fraudsters.

    Of course, why develop real business skills when all you have to do is swindle your way to billions in net worth? It’s time for the VC world to reckon with their investments — and their values.

  • So many questions. How the heck did they get hundreds of millions in loans? How are they still on the board? How did investors commit so much money and miss these pretty big issues? All of the people who did these deals should be put on leave for negligence - their investors should be outraged.

  • Wise comments here. My add: I am frequently amazed at the sheer speedy greed as a primary motivation for entrepreneurship, particularly in the US. What happened to the joy and fun in founding and running something profitable *enough*? To employ some people. Feed the family. Have a vacation. Drive a car. If the company is simply a means to promising explosive and probably daft growth, raise millions and get out, then you’re probably not doing anything worthwhile or interesting. Unless getting rich

    Wise comments here. My add: I am frequently amazed at the sheer speedy greed as a primary motivation for entrepreneurship, particularly in the US. What happened to the joy and fun in founding and running something profitable *enough*? To employ some people. Feed the family. Have a vacation. Drive a car. If the company is simply a means to promising explosive and probably daft growth, raise millions and get out, then you’re probably not doing anything worthwhile or interesting. Unless getting rich is the only thing you’re interested in. Call me old fashioned, but I think life should be about more than that.

  • I have known the founders since we were startups and they are hardworking/smart entrepreneurs so it’s been really hard for me to understand how this happened. However, they grew so fast and it’s a good reminder that fast growth comes with its challenges. I would guess they were out of a lot of the day to day, but ultimately you are still responsible for the things that happened. It was a reminder to me to do our best to grow in a healthy way to avoid something like this hurting the company.

  • As others have said, why did investors throw so much money at it? They should have realized the returns were unlikely to be there.

  • I know the founders personally. Good team that raised a bit too much money, grew faster than they knew how. I really hope they can figure it out as I like them and the company.

  • Something about this feels off - It wouldn’t make sense to be an equity investment.

  • $500 million is huge. I thought VC funding comes with great difficulty. Weren’t investors looking at quarterly metrics? Asking for a clear roadmap ? Making them accountable ?

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