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If you're talking about morality, when a VC is funding a company they don't know if it's going to act like Uber or like Lyft. The post you're responding to is
by kjksf 9y ago
If you're talking about morality, when a VC is funding a company they don't know if it's going to act like Uber or like Lyft.
The post you're responding to is about economics, though, and VC math doesn't work for funding modest successes.
A VC can fund 10 businesses and have 9 of them fail (high risk) as long as the remaining one provides 100x+ return (high reward).
If you don't fund that one blockbuster then you can't fund the failures.
If you want to be in low-risk and low-reward business, then you're a bank and you're providing loans, not giving out no-strings-attached cash.