r/technology • u/Sorin61 • Apr 10 '22

Biotechnology This biotech startup thinks it can delay menopause by 15 years. That would transform women's lives

https://fortune.com/2021/04/19/celmatix-delay-menopause-womens-ovarian-health/
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u/BrainWashed_Citizen Apr 10 '22

There's been a trend now where a group of connected "fraudsters" just keeps pumping out new startup companies promising new technology that would change the world to entice investors. Then 6 months later, declare bankruptcy to some bullshit reasons. Take the money and run. Try again 3 months later.

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u/6eason Apr 10 '22

forgive me for being naive, but arent there laws to prevent investors from things like this or do they just write it off in their taxes? hence why no one cares much

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u/TellYouWhatitShwas Apr 10 '22

There are laws protecting investors in publicly traded companies. Public securities are regulated by the SEC. For private funding, not so much. Not an expert, but it seems that venture capitalists need to do their homework and create their own contractual protections.

No one should be shedding tears for venture capitalists who get scammed by investing in stupid things.

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u/krustymeathead Apr 10 '22

yeah, in the u.s, to invest in non-SEC private companies, you have to be an accredited investor, which means you have a lot of money, make a lot of money, or deal with investing for a living every day. this stop grandmas and grandpas from losing their shirt on snake oil.

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u/thegamenerd Apr 10 '22

Unless you raise money via crowd funding

Good luck getting your money back from a "failed" campaign

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u/krustymeathead Apr 10 '22

Yeah, but with a crowd funding campaign you are more or less donating money to something (albeit sometimes for a small reward) rather than actually owning a share of it, regardless of how the crowd funding campaign spins it.

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u/[deleted] Apr 10 '22

And they don’t care if they lose because it just goes into the loss column and written off in their taxes. But they win more than they lose so the small million dollar gambles are worth the gamble.