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Are you saying lighting $375m on fire at the same time wealth inequality is imploding is not a newsworthy item? That a CASCADE of laughable investments by Softb
by tmpz22 7y ago
Are you saying lighting $375m on fire at the same time wealth inequality is imploding is not a newsworthy item? That a CASCADE of laughable investments by Softbank is not newsworthy to the VC/tech/software establishment?
- anm89 7y agoCorrect. You are not understanding the VC business model. It's only lighting money on fire if the fund as a whole fails to generate returns. The EXPECTATION is that many component investments will fail. This is exactly the same model as YCombinator. Most of their individual investments fail and this isn't, nor should it be, news worthy.
- tmpz22 7y agoNot according to YC’s own website [1]. YC’s average deal size is 150k. In order for YC to burn 135m they would have to invest in ~900 different companies compared to Softbanks one bet on robotic pizzas. Investing in 900 different companies is a much more diverse portfolio and an entirely different value proposition. If you want to cheer on the intelligence of Softbank because they lucked out with an investment in Alibaba early on, you must still hold stock in Yahoo!... [1]: https://www.ycombinator.com/deal/ https://www.ycombinator.com/deal/