[jl2718]

The pattern that I see is startups succeeding on money alone. Ideas and execution that would never be sustainable turns into the next big thing because so many people are invested in it, and everybody is pumping hard to find the greater fool.

If a VC sees a good business with great execution that doesn’t need their money, they’ll rush out immediately to find a competitor that does. If an investor is sitting on a good business, they want to keep it quiet and hold their shares privately. If it’s a toxic money pit, push it onto the LPs and then get them to help you pump and raise.

The cost of big-money capital is so cheap now that it inverts the incentive for business discipline. The more you lose, the more you raise, the bigger the valuation.