There is no fundamental difference in investing a start-up, and buying stock in a company that is already up and running. Stocks pay dividends, and buying a stock means speculating that the company will produce more and pay more dividends than what you paid for it. Likewise, investing in a startup is speculating that the startup will be profitable and you get your investment back with interest.
If I go to a bank and borrow money to start a business is the bank speculating or are they just engaging in productive investing?
Sure the banks expects to get their money back with interest.
Just like people who invest in startups expect some interest on their loan.
But speculating is betting this company will do good and this will do bad.
And that is a game easily rigged.
