>At the age you're agreeing this you are very unlikely to correctly judge your own value. I think that's the point, isn't it? Even if the student overestimates

>At the age you're agreeing this you are very unlikely to correctly judge your own value. I think that's the point, isn't it? Even if the student overestimates his potential, investors with more neutral incentives and more broad experience in predicting such outcomes won't. Lots of startup founders overestimate themselves too; the social purpose of VCs is to make judgments on who can use capital the best. What we have now is like a government agency that gives capital to literally anyone who wants to start a company, promises them riches, and makes them pay half the tab anyway so they end up hugely in debt in addition to wasting the taxpayers' share.