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WeWork debacle exposes why investing in a charismatic founder can be dangerous

Updated : October 28, 2019 12:57 PM IST

WeWork went from unicorn darling with a nearly $50 billion valuation to a cautionary tale for gullible investors worth just $8 billion in a matter of months.
Theranos and WeWork are examples of what can go wrong when the founder is both owner and executive in a venture capital-backed startup.
Unemployed workers and wasted capital are the collateral damage when investors fall prey to the principal-agent problem.
WeWork debacle exposes why investing in a charismatic founder can be dangerous
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