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I just wondered for the first time: do these sorts of raises vacuum money away into one large basket, instead of bets on many smaller startups? Could it be zero
by codeisawesome 9y ago
I just wondered for the first time: do these sorts of raises vacuum money away into one large basket, instead of bets on many smaller startups? Could it be zero-sum in a way?
- Denzel 9y agoThe VC market expands and contracts like any other following the principles of economics. Therefore, the fact that the production possibilities frontier (is there a better term for a money market?) can move outward shows it is not zero-sum. In simple terms, as time goes forward, more and more resources can be created and injected into the market unlike a truly scare resource.
- chrischen 9y agoHe said "zero-sum in a way" and that is true. At any given point in time it is zero sum, and for practical purposes you can approximate it as zero sum. To say that if i robbed all of silicon valley investors of their money and claim it won't affect the funding prospects of new startups would be a lie.
- Denzel 9y agoEverything is zero-sum at an instant of time... I figured that was obvious enough that I didn't have to say it. If you want to approximate it as zero-sum, be my guest. It's a functionally useless approximation.