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by Jaruzel
2876 days ago
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We’re building a community of creative young people working on interesting projects around the globe. YOUNG people?! As a young-minded 40-something, I find this statement offensive. On the basis that I fully intend to live for at least another lifetime I've still got plenty of mileage left in me yet. Why are companies obsessed with 'young people'? They know nothing, and have hardly any experience. Us 'slightly older people' are a way better bet. |
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The charitable explanation is that investing in an unknown has almost unlimited potential upside that investing in the experienced doesn't provide (because an experienced Bezos|Page+Brin|Zuckerberg, etc. doesn't need VC money), so investors are only left with 3-5x opportunities[0], when the once-in-a-blue-moon 100x blockbuster is what actually covers the cost of all the failed investments and still turn a profit.
The uncharitable explanation is that the young and inexperienced are easier for investors to take advantage of via liquidation preferences etc.
[0] This assumes that an experienced founder with a 3-5x track record doesn't have a 100x company in them. Which is patently false, but so goes the narrative.