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How many startups fail every year again? Well let's find out: https://www.quora.com/What-percentage-of-startups-fail?srid=FEsz&share=0df0ea6f https://www.quora.

• argonaut 10y ago
  Yes, and? It's exactly that kind of focus - focusing on the average outcome rather than the power law outlier outcomes that return your entire fund - that characterize the people who laughed at FB's valuation, as opposed to the VCs who invested in FB.
  • autotune 10y ago
    I agree that risk is certainly required if you want to make a return on your investments, however, all I'm saying is that for every Facebook, there are hundreds more that don't make it where money gets wasted. If I were an investor I'd want to make sure there was a tangible product doing something innovative out there, rather than just a new way to collect and sell user data. I'm not a VC nor do I really inderstand the mindset though, so if investing in miracles is your thing and has worked for you then more power to you.
    • argonaut 10y ago
      Yes. Investing in miracles is what VCs do. Investing in 50 companies and only having 5 of them succeed is what they do. Investing in 50 companies and expecting 45 of them to succeed is called being a small business bank.