[AR] Re: VSS Unity powered flight

  • From: Henry Spencer <hspencer@xxxxxxxxxxxxx>
  • To: Arocket List <arocket@xxxxxxxxxxxxx>
  • Date: Sat, 7 Apr 2018 23:53:50 -0400 (EDT)

On Sat, 7 Apr 2018, Paul Mueller wrote:

When I wondered how Rand could definitively say that VG will never be a commercial success, I admit I was thinking in terms of whether revenue could cover operational costs and generate a cashflow profit, not thinking about return on investment for the development costs...

Yeah, "commercial success" is more often used to refer to the state of the company itself -- whether it's profitable, growing, etc. -- than to whether the investors are doing well from it. There are plenty of commercial successes which don't make investors especially delighted, e.g. a lot of commercial airlines.

The ultimate example, of course, is companies like Iridium, which have been through -- to swipe a phrase from the late Jordin Kare -- the "neutron mortgage", Chapter 11 bankruptcy, which (typically) wipes out the investors but leaves the company standing.

Henry

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