Venture backed startups trying to grow faster and bigger than their natural market can support

We see this often: venture backed startups trying to grow faster and bigger than their natural market can support by cutting corners and sacrificing quality:

OnDeck has teamed up with brokers convicted of stock scams, insider trading, embezzlement, gambling, and dealing ecstasy, according to interviews with the brokers and court records. Brokers have brought $349 million of loans to OnDeck so far this year, already 35 percent more than 2013’s total, according to the prospectus. That represents a risk, the company acknowledges in the filing: If partners “mislead loan applicants or are engaged in disreputable behavior, our reputation may be harmed, and we may face liability.”

via OnDeck IPO: Shady Brokers Add Risk in High-Interest Loans – Businessweek.

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