Correct. R&D only creates future value. Usually in the VC model, R&D is done by individuals or small groups and then funded (bought) by VC to get it to market. So even though the R&D do-er can cash out their future profits for immediate profits, the value of that R&D can’t be realized immediately.
I personally think the VC and legacy models are currently competing, and VC is winning out. As we see here, even large, established companies aren’t immune to impinging VCs.
But then, an R&D organization doesn’t have short term profits.
Correct. R&D only creates future value. Usually in the VC model, R&D is done by individuals or small groups and then funded (bought) by VC to get it to market. So even though the R&D do-er can cash out their future profits for immediate profits, the value of that R&D can’t be realized immediately.
I personally think the VC and legacy models are currently competing, and VC is winning out. As we see here, even large, established companies aren’t immune to impinging VCs.