[david927]

That's a lot of reasoning but little insight. Very few people have 20k cash to spend, world-wide. Some of them might have true innovation in their pockets.

The problem is, an investor needs these people more than the other way around. There this general pretense that when you're funded you've been blessed by 'angels', but they need the big hit more than you do. And yet, they won't budge. They refuse to see that it's a two-way relationship and so everyone loses.

In other words, we don't have the innovation we all want partly because we are so bad at figuring out how to connect funding to innovation. Currently, we use inane heuristics, ego and bankrupt intuition -- and it's not working.

[howareroark]

I'm not sure 'true innovation' is what investors are looking for though. I mean that's what they say because it 'sounds right'. In reality they want to create a buzz and draw attention to something. I do agree that they need people, but the good ones make sure they have the right network.

I think what they do is entirely based upon intuition and ego. If it was just about making sure that things 'add up' a computer could do it and banks would make big bucks. They need to be sure that the idea really can be big in society, and that the founder is the type of person who will drive it there.