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Silicon Valley funds Instagrams not Hyperloops because it funds things where it can manage risk in a predictable way through capital. Contrary to other comment
by richardjordan 13y ago
Silicon Valley funds Instagrams not Hyperloops because it funds things where it can manage risk in a predictable way through capital. Contrary to other comments it's not down to scale of investment. There's a lot of investment cash out there and it's actually VERY hard to find big investment deals - if you have an opportunity to put a ton of cash to work it's appealing.
Hyperloop will be absolutely bogged down in political dealing, backhanders, corrupt politicians, labor unions, incumbent industries so inefficient they'd rather spend money on lobbying and gaming the political system than doing something about their fading competitive position.
This is just not something that allows financial backers to have any kind of forward visibility, even modeled, into their investment.
Silicon Valley isn't TechCrunch. That's just the noise and that kind of startup is just what you see and hear the most.
There's not a lack of thinking big or looking outside the consumer internet software space.
Look at how Silicon Valley bet heavily on Cleantech and got its ass handed to it. That wasn't lack of vision. Or lack of capital. It was venturing into investment arenas where success factors became more political than economic; more corrupt back room dealings than efficient execution and management skills.