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by raffraffraff
1663 days ago
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I can't say I agree with either of you 100%. For example, your statement that VCs expect each and every one of their investments to turn into rocket ships? Nah. If they don't know that a % of their portfolio will fail, then they're idiots. Also, FOMO. Any time there's a new hot technology, VCs soil themselves trying to get a piece of the action (AI, I'm looking at you). So they end up investing in start-ups that probably won't succeed (BUT IF THEY DO, RIGHT???) I definitely agree that it's all about appetite for risk. I'm not sure you disagree with each other fundamentally, you're just watching from different sides and wording it accordingly. Some people buy stocks for long term investment, some people short sell, and some bet their house on a hand of poker. I'm sure they would have a bar fight if you got them talking about risk appetite. |
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Yes, but they don't know which ones. What the commenter meant is that the VC believes each and every one of their investments has the potential to become a rocketship. So they spread the risk into several potential rocketships and hope for one of them to not crash.