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I'd honestly be curious to why this comment is being downvoted so much, as I've often found myself agreeing with this refrain. To pre-answer the common rebutta

I'd honestly be curious to why this comment is being downvoted so much, as I've often found myself agreeing with this refrain. To pre-answer the common rebuttal I get, that VCs are taking moonshots at the chance of a VERY HIGH return; I'd ask why not look at VC investments in the sense of a more traditional portfolio, where you'd have your growth stocks, your value stocks, etc. If I could find a vehicle that reliably gave 20% YOY I'd throw fistfulls of money at it. So can someone enlighten me as to why this isn't a viable way of looking at VC investment?

mikedouglas 10y ago
It's not a viable way to look at investing in ad companies. Advertising has historically been zero-sum (about 2% of the economy), and there's huge returns to scale (more data, bigger advertisers, etc). Unless your inventory is unique (which it isn't), you need reach (which is why TV is/was such a great platform). Look at Twitter, which is having a extremely difficult time w/ ads because of that lack of scale. In ads, you want to be GOOG/FB, not TWTR.
forgetsusername 10y ago
>id honestly be curious to why this comment is being downvoted so much Because it confuses revenues and earnings? It defends Snap chat for not having "negative billions" when, in fact, it is has negative billions.