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Because the VCs get paid win or lose? There's literally no downside, there's massive amounts of money looking for returns and as has been proven time and again,
by yborg 6y ago
Because the VCs get paid win or lose? There's literally no downside, there's massive amounts of money looking for returns and as has been proven time and again, even a long terrible track record is no deterrent to getting money out of public pension funds that also have no real downside to making terrible decisions.
- rmnoon 6y agoThis isn't really accurate. VCs would much rather get paid 20+% carry than 2% management fees (and raising a follow-on fund would be quite difficult if you failed to make returns and publicly blew most of your fund on a boondoggle like Magic Leap).
- fermienrico 6y agoAt some point reputation is on the line I would guess. The whole credit system and all.
- paul_f 6y agoIn any given fund, true. VCs re always raising the next fund and need to show results.