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by SkyMarshal 1116 days ago
> a16z's investment thesis completely centers around finding the next bagholder for their investments.

To be fair, that's all of VC investment thesis, not just a16z. VC is by definition early stage investing, the objective being to build up a project enough that it can be either IPO'd or sold to a bigger company, providing the returns for the next round of early stage investments. a16z is nothing unusual there.
2 comments
bcrosby95 1116 days ago
The phrase "the next bagholder" means that it isn't worth it.

If, for example, you buy a house with a fucked up foundation, fixing and selling it isn't finding the next bagholder. Covering it up and selling it ASAP without disclosing it is finding the next bagholder.

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kristianc 1116 days ago
No, the objective is to add value by making it a better business. Not to pump it up full of hype so you can palm it off on a greater fool.
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