... and this important little element from PG's essay on 'Inequality & Risk' [1] from 2005: "... reducing investors' appetite for risk doesn't merely kill off

... and this important little element from PG's essay on 'Inequality & Risk' [1] from 2005: "... reducing investors' appetite for risk doesn't merely kill off larval start-ups, but kills off the most promising ones especially. Startups yield faster growth at greater risk than established companies. Does this trend also hold among startups? That is, are the riskiest startups the ones that generate most growth if they succeed? I suspect the answer is yes. And that's a chilling thought, because it means that if you cut investors' appetite for risk, the most beneficial startups are the first to go..." Understanding this could mean a lot to SV VCs but then I'm sure they understand it already. [1] http://paulgraham.com/inequality.html http://paulgraham.com/inequality.html