I can tell you have decade(s) more experience than me in life and the software field in general. So my perspective may be different, limited and different in some ways.
But really different people think differently. Investors are looking at it differently, they're willing and eager to gamble. VC basically gamble for 1 hit out of a 100 bets. But that 1 bet will double or triple their money, then its worth it for them even if they have to write off 100 million in failed bets -- there's probably tax benefits doing this.
I found out about this at one point. I asked a founder, "so investors are just gonna let the company go under? They're willing to write off 5 million in the funding they gave your company?" It was such a irrational thing to me. But looking back, it's not irrational from the VCs point of view.
I agree with you. Some things make no sense as you point out in your comment.
But the people are complex and often irrational, at least from an outside perspective. Imagine aliens observing us, what would they think about how we live and operate.
Reminds me of a Silicon Valley quote -- what a show, it's remarkable how much it accurately depicts the industry
> You're one of Peter's compression plays, huh? Uhh, one of? How many does he have? Not too many. Like six or eight. Ok. Why are there so many? You know how sea turtles have a shit-ton of babies because most of them die on their way down to the water? Peter just wants to make sure that his money makes it to the ocean.
But really different people think differently. Investors are looking at it differently, they're willing and eager to gamble. VC basically gamble for 1 hit out of a 100 bets. But that 1 bet will double or triple their money, then its worth it for them even if they have to write off 100 million in failed bets -- there's probably tax benefits doing this.
I found out about this at one point. I asked a founder, "so investors are just gonna let the company go under? They're willing to write off 5 million in the funding they gave your company?" It was such a irrational thing to me. But looking back, it's not irrational from the VCs point of view.
I agree with you. Some things make no sense as you point out in your comment.
But the people are complex and often irrational, at least from an outside perspective. Imagine aliens observing us, what would they think about how we live and operate.
Reminds me of a Silicon Valley quote -- what a show, it's remarkable how much it accurately depicts the industry
> You're one of Peter's compression plays, huh? Uhh, one of? How many does he have? Not too many. Like six or eight. Ok. Why are there so many? You know how sea turtles have a shit-ton of babies because most of them die on their way down to the water? Peter just wants to make sure that his money makes it to the ocean.