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I think this article is expecting VCs to do something that angels and founders do: take a chance on a crazy idea in exchange for owning a BIG chunk of the upsid
by spolsky 17y ago
I think this article is expecting VCs to do something that angels and founders do: take a chance on a crazy idea in exchange for owning a BIG chunk of the upside.
A VC is a later-stage beast. They want less risk, and are willing to accept less reward (and ownership).
There's a spectrum of risk and reward and not everybody is in the same position.
- fnid2 17y agoA lot of innovation happens in the shadows before metrics evolve that help VC's determine probability of success. It's only when the VC's can judge among a number of opportunites, that they will invest in any of them. Even with quite a number of players, there is still plenty of upside. Innovators think, "I'm the only one doing this and it's going to change the world." Innovators think VC's want in on the ground floor to maximize returns on capital. Innovators think their ideas are sure things. But they aren't. It's good innovators think that, because if they didn't, they wouldn't waste their time on their silly ideas that never go anywhere... but sometimes do.