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The “arguments” I see about that are always some variation of “they were wrong about WeWork!”, and leave it at that. Obviously smart people can be wrong, obviou
by senordevnyc 1y ago
The “arguments” I see about that are always some variation of “they were wrong about WeWork!”, and leave it at that. Obviously smart people can be wrong, obviously dumb money exists, but the entire VC model is that the vast majority of your ultra-risky investments will fail, so pointing to failures proves nothing.
- rsynnott 1y agoIf the vast majority of a VC’s ultra-risky investments fail (this is generally true, though usually somewhat less true at the “late-stage investments of billions” stage, hence WeWork being an interesting example), that would imply that there’s little reason to assume VCs are any good at reading financials; it won’t impact their business that much. WeWork is IMO fairly strong evidence that SoftBank is, or at least was, either incompetent here or simply not looking at all.