4 ms·

If the horse race has 10 contestants why would the odds be 1000:1?

• fragmede 2y ago
  Because it's an imperfect metaphor for how VC investing works to further enrich the wealthy.
• naming_the_user 2y ago
  Not everyone is competing. In the economy as a whole how many people are even business owners? Most people go to work and price take at their job without negotiating, without even moving area, without even studying, etc. You also have multi-company-monopoly effects for lack of a better term, e.g. if there are 10 competitors that make semiconductors - _everyone_ needs semiconductors, then if you pick the appropriate balance and don't buy in at an overvalued time you can invest in all ten and still make money because there is a net flow of funds into the system from outside of it.
  • sebastiennight 2y ago
    Is "oligopoly" the word you were looking for?