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I don't think the OP doesn't understand this, I think hes simply arguing that the person putting up the money to do amazing things should get less of a return t

• kkowalczyk 13y ago
  Unfortunately how? Amazing person doing amazing things has an option to not take the money and have 100% of the upside of his amazingness. What people seem to forget is that it's about risk. VC investing is high risk. For every 10 investments, 1 is wildly profitable and the other 9 are failures or low returns. For that reason the ROI for that 1 out of 10 success cannot be "fair" by your metric - VC has to make enough to cover the 9 losses and some profit. What the amazing person gets from the deal is knowing that even in the likely 90% case of failure, he won't sink in debt to fund his work.
  • legutierr 13y ago
    Venture capital investing is not the only method by which to mitigate the risks inherent to innovation. The university system, via tenure and grants, does a good job of facilitating innovation by mitigating the risks that individual researchers take--even when big capital expenditures are required. Other systems can be envisioned: for instance, a basic income or a negative income tax would remove much of the risk that individual programmers, inventors and tinkerers face when trying to pursue their visions.
  • deleted 13y ago
    [deleted]