How? You convince people it's worth the investment. Why? You're building something that requires massive upfront capitilization. People here act like this kin

How? You convince people it's worth the investment. Why? You're building something that requires massive upfront capitilization. People here act like this kind of money is unprecedented. How much many goes into building infrastructure? How much money do investors put into building a new building? Large construction projects routinely raise 10s or even 100s of millions of dollars. Sure, if you're funding a building you're "buying" a "product" that is much better understood and has a higher chance of success (but can also fail!). But it also has a much lower chance of getting you very high returns. All that startups like Magic Leap do is take both of these numbers to the extreme: very small chance of success, but at being a 100-billion-dollar company. Some investors like this tradeoff, and they tend to be pretty savvy and educated. This also tends to be a small part of their portfolio. I think we shouldn't assume we know better than them, just because we read some stuff on the internet.