Massa San and His $100B Ponzi Scheme
Massa San, appears to be blessed by the Universe with a charismatic personality and the gift of gab, which as we all know of him, has been very effectively deployed. History will judge whether and what type of mark he will leave but there is not doubt he has made a “mark” in the life of Venture Capital and Entrepreneurs, Worldwide. And he has done so with other people’s money (OPM).
Maybe someone someday, will write a Biography, but today Massa San is the head of the World’s Biggest Ponzi Scheme with a $100B of evaporating Capital.
And just when the world felt the Venture World in Silicon Valley was insane on a 0-10 scale of insanity, or stupidity Massa San and his cronies at the Vision Fund are a 9 (There will always be someone crazier) while the VC’s of today are a 2-3. Yes, that can be called “Disruptive Capital” or creating destruction of Global Wealth.
Remember the basic principle of Money in life (which our President Trump also used effectively). If you borrow $1000 from the Bank and do not return\or are unable to pay, you, the borrower, are in trouble.
However, if you borrow millions of $ and are unable to pay, the Bank is in trouble. And they will help you to get out of trouble.
In the case Vision Fund, this is clearly the case. Based on “Massa San’s Luck” his investment in Alibaba soared in value, looks like Alibaba found the Treasure Cave for Massa San. He then used the value appreciation, as his basis of investment to attract “The Rich and Famous with Greed to expand Wealth”. This launched the Foundation of the $100B Ponzi Scheme.
Flying High (as most Ponzi Schemes do initially), he invented the “Over invest/overspend to get market share philosophy” with his genius “One Minute Business Analytics”.
His presentations are charts of Kindergarten business class and because of the wealth aura Entrepreneurs like “We Work Founder” say they are simply amazing. You would be amazed too, if you get $5B when you were seeking $50M. In order to establish credibility and calculate return he uses two simple Ponzi Scheme principles (not sure if he even understands or ever dealt with Financial statements. He has all the Indian cronies from Ex UBS who sit with their dirty feet on other people’s laps because this is another way of saying their feet does not stink. Money has its own smell when humility is lost.
His first step of Ponziness is:
1. The Vision Fund loans, other people’s money, from its raised funds, to its Managers/Employees to show their commitments to the “Rich and Famous” limited partners. What is this money collateralized by? Oh, of course Massa San goodwill & Management future income of the Fund. Have you ever heard of such nonsense, Even the VC’s know, this is ridiculous, debt over debt.
2. The second step to justify the First Step is called Self-Valuation of successive rounds. When money talks you can price your first round at $X/per share. Then a few months
Later when that money has evaporated without any business/revenues or profit traction, the same investor does the next round at 3-4 times/share. This shows the value appreciation (perfect mirage) to the limited partner as the initial investment is now appreciated. (Really) The worthless cronies work out fictitious balance sheets through immaculate Financial Engineering because that is their contribution to value creation. The “Royal Suckers” who give them Massa San more money to collect his Management Fees and pile more investments in their companies.
Of course, I am trying to make this as simple as Massa San does, but you get the picture. We work, Wag, Oho and many more …. Are now the falling House of Cards of Massa San’s Ponzi Scheme – The Entrepreneurs are not hurt, and that is probably the best outcome of this scheme but wealth of investors has been destroyed while Massa San travels the World in Private Plane with his egotistical cronies insulting hard working people with their Blessed and bare feet. The end is still to unfold but don’t be surprised if you read of Massa San’s Harakiri, suicide by sword as he shuts down his $100B The Blind Fund?