Let me be more precise. When I said the situation was not as simple as his comment implied, I meant that even if Yuri's money was tainted in some way, it was being used as a counterweight to another bad thing.
"The reason VCs don't like Yuri is that he is disturbing the cosy world they formerly inhabited by offering more founder friendly terms."
I greatly respect and admire you pg, and god knows you're far more intelligent than I am, but surely you can't be so naive as to think that Milner is doing what he is doing out of some altruism for founders?
He is spending outlandish amounts on startups for the same reason Abramovich spends hundreds of millions on yachts, why the Sultan of Brunei spends millions on cars, and why the Saudi princes spend millions on trips to the Riviera. Because he never worked hard for the money, and so he doesn't care about throwing it around.
When a man works hard, he is loathe to spend it carelessly, because he knows the sacrifice in time and effort it took to acquire the money. In the words of the great Milton Friedman: "Nobody spends somebody else's money as carefully as he spends his own". This applies not only to government officials but to the criminal element as well, from hoodlums to ponzi schemers and everything in between.
People like Milner and others associated with Russian oligarchs spend lavishly because the money they have came with no sacrifice on their part. The sacrifice came from all those miners working in subzero temperatures in the Kazakh steppe for kopeks a day, their bodies broken down prematurely, with the share of wealth that was promised to them stolen away. And instead of those who betrayed them being brought to justice, they instead depart to the West where they are greeted with applause by those who mistake cunningness with intelligence.
...surely you can't be so naive as to think that Milner is doing what he is doing out of some altruism for founders?
pg didn't say or imply that. If you read what he's written about investing (e.g., http://paulgraham.com/future.html, http://paulgraham.com/control.html), you'll see there's a much simpler explanation: pg thinks being founder-friendly is a good (i.e., profitable) investment strategy.
>Because he never worked hard for the money
This is simply not true, most of these people work hard, risk and sacrifice a lot to get their money. There is a cultural tradition in Russia to spend a lot if you can afford it.
(In this particular case it an investment strategy, so your theory doesn't apply either).
From reading this post, I am surprised that this story is not on top of the Hacker News....anyway, i agree 100% with what the above comment says....PG and Hacker News sold out and sold their Souls to Yuri and all the corrupt Souls that Digital Sky Technologies (DST) is associated with. Good Going Paul.
I would be hard pressed to not believe it. From my own experience.
I don't know Yuri - you do.
He may as well be the only honest Russian oligarch (or a front for the only honest Russian oligarch).
But what GP posted is the state of affairs everywhere in eastern block and by far the norm.
Thus you must understand if people think less of you because of your associates. It is an prejudice but a well founded one.
In the end it won't matter anyway. But this is the way things work. I believe I read somewhere that yourself are of Russian ancestry? If so I believe you should be familiar with long tradition of tyranny of the few in Russia.
<People like Milner and others associated with
Russian oligarchs spend lavishly because the
money they have came with no sacrifice on
their part. The sacrifice came from all those
miners working in subzero temperatures in the
Kazakh steppe for kopeks a day, their bodies broken down prematurely, with the share of
wealth that was promised to them stolen away.
And instead of those who betrayed them being
brought to justice, they instead depart to the
West where they are greeted with applause by
those who mistake cunningness with intelligence>
Pg it~s time yo returm the $$$$ back you sold you sole and sold out
Nuff Said
You seem to be implying that breaking up the VC cartel in Silicon valley with money that was potentially stolen from russian peasants maybe OK. I understand that Ycombinator companies need their $150K, but this seems contrary to Valley values. Or maybe you meant something else?
“Founder unfriendly conditions” do not compare to the way oligarchs operate and the consequences of their actions.
Much of the authenticity that comes through in your essays is based on being truly committed to the things you talk about. They are often controversial and authoritative (in a good way), but the possible discrepancy between what you say and what you do could easily undermine that authenticity.
Saying that other VCs do not care where their money comes from, does not make sense here. They are not judged as authorities on topics you write about.
Do you disagree with any of these points?
- You can use the profits from investing tainted money for further investments, but the money still stinks.
- The money that came from DST's partners is tainted.
I greatly respect and admire you pg, and god knows you're far more intelligent than I am, but surely you can't be so naive as to think that Milner is doing what he is doing out of some altruism for founders?
He is spending outlandish amounts on startups for the same reason Abramovich spends hundreds of millions on yachts, why the Sultan of Brunei spends millions on cars, and why the Saudi princes spend millions on trips to the Riviera. Because he never worked hard for the money, and so he doesn't care about throwing it around.
When a man works hard, he is loathe to spend it carelessly, because he knows the sacrifice in time and effort it took to acquire the money. In the words of the great Milton Friedman: "Nobody spends somebody else's money as carefully as he spends his own". This applies not only to government officials but to the criminal element as well, from hoodlums to ponzi schemers and everything in between.
People like Milner and others associated with Russian oligarchs spend lavishly because the money they have came with no sacrifice on their part. The sacrifice came from all those miners working in subzero temperatures in the Kazakh steppe for kopeks a day, their bodies broken down prematurely, with the share of wealth that was promised to them stolen away. And instead of those who betrayed them being brought to justice, they instead depart to the West where they are greeted with applause by those who mistake cunningness with intelligence.