[satvikpendem]

> Which is to say that VC's often chase very high-risk ways of getting growth even in cases where they know it's just a question of time before valuations will collapse, because most of them are in the business of producing returns, not sustainable companies, and many of them are "dumb money". It's a tough business. I spend a few years in one, analysing the track records of other funds among other things, and I saw so much stupidity in that dataset.

This is a highly logical approach by VCs simply due to their business model of only needing one hit out of hundreds to make a positive return. Reading a recent article called Why You Shouldn't Join YC [0] was quite illuminating with regards to this fact. It is the ergodicity that kills most startups, which is exactly what VCs capitalize on. Personally, most of the counterarguments in the HN thread do not move me, of course a startup might pivot but they need not do it based on the VCs' insistence.

[0] https://news.ycombinator.com/item?id=37869760