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Picking startups based on the investments of eminent angels would protect against most gaming. They're not going to change their investment criteria based on w
by pg 18y ago
Picking startups based on the investments of eminent angels would protect against most gaming. They're not going to change their investment criteria based on what's happening downstream of them.
- yummyfajitas 18y agoThe ability to get government funding increases the success probability of various startups. What happens downstream will affect success rates. I.e., if flagsfororphans.com goes well, VC's win. If it gets into trouble, the possibility of future government funding may let the VC's recoup some of their investment. This makes VC's prefer flagsfororphans.com to satanictitleinsurance.com, which obviously does not have the same possibility of government funding.
- pg 18y agoProbably not that much in practice. Startups that would have succeeded may succeed faster, but startups that would have failed will still fail. More funding never seems to save bad startups. It just makes them die slower.
- netcan 18y agoEven if we accept this, to avoid all sorts of distortions you would need all market players to believe this.
- anamax 18y ago> The ability to get government funding increases the success probability of various startups. How about some supporting evidence?
- deleted 18y ago[deleted]