[Fr0styMatt8]

Going to sound a bit cynical here, but really isn't $30 million just spare change to a VC?

To us we see $30 million and think "that's a ton of money!! how could he get that funding?" but to the VC it's like "Here's a bit of spare change, maybe you'll make something out of this, maybe not".

From that viewpoint alone I could understand why a VC would fund this. I mean, could you guarantee that it's NOT going to be some breakout hit? What if you did pass on that $30 million investment and the company did actually turn out to be valuable? It's easy to say post-hoc once the company has been stupid that the VCs ought to have known about it, but it looks different if you think back to what the VCs must have known when they were approached.