In particular, what are some taboo areas that VCs in the valley tend not touch with a ten foot pole even though there may be a highly profitable business model and/or mass audience appeal?
Ask HN: What startups are highly profitible but VCs won't touch?
1–10 of 34 posts
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#2Sheer speculation: porn and gambling.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#3VCs are often forbidden by their agreements with their LPs to invest in certain types of business. I forget what they are exactly, but it's not simply a matter of taboos.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#4Gambling, Drugs, Prostitution, Porn. In general, any business already controlled by the mob or blue collar criminals.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#5VCs are often forbidden by their agreements with their LPs to invest in certain types of business. I forget what they are exactly, but it's not simply a matter of taboos.
Thanks for the quick response pg, would you say in addition to being bound legally, there is a cultural bias against certain types of businesses (assume fully legal)?
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#6Sheer speculation: porn and gambling.
Gambling seems like a no go because of legalities in the US, but there's a huge gambling technology sector in the EU and UK where it's legal.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#7Gambling, Drugs, Prostitution, Porn. In general, any business already controlled by the mob or blue collar criminals.
Porn is controlled by criminals?
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#8Gambling, Drugs, Prostitution, Porn. In general, any business already controlled by the mob or blue collar criminals.
Porn is controlled by criminals?
Seems to be a sweeping generalization but it does seem like the porn industry attracts a certain "seedier" element of folks. These same folk also happen to be amazing marketers and I can point to many techniques on landing pages, SEO, etc. that were first leveraged by the adult industry.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#9There is a grey area that also exists for "dating" applications (ex. Grindr) etc that could be used for other purposes.
Re: Ask HN: What startups are highly profitible but VCs won't touch?
#10Earlier quoted context omitted.
Porn is controlled by criminals?
Seems to be a sweeping generalization but it does seem like the porn industry attracts a certain "seedier" element of folks. These same folk also happen to be amazing marketers and I can point to many techniques on landing pages, SEO, etc. that were first leveraged by the adult industry.
Generally couldn't it be moreso that being involved in porn is part of the definition of "seedy?" It's not the people themselves, but guilt by association.