[drd]

I think VCs and Angels work based on a set of rules similar to Wall street. They take risks most of the time blindly to gain more. Who can test every aspect of the idea? Who can analyze and predict all the outcomes? They make money like middlemen. They don’t make money because of production. Here are the rules:

- If one of many ideas works, it makes big and it compensates for all those failed

- Create hype through journalism, this is performed by using big numbers, which are not necessarily always correct numbers. Who can prove the numbers are not correct?

- Ideas funded by previously successful investors are more likely to get higher valuations and then being sold. That is why on the front end of every new company you would see the name of investors. Does the consumer care about the investor’s name? Obviously no.