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No, I am equating the profitability of the VC with the profitability on average, of the individual ventures they invest in. That is, the mean profit of the ind
by QuantumChaos 12y ago
No, I am equating the profitability of the VC with the profitability on average, of the individual ventures they invest in. That is, the mean profit of the individual ventures.
If the VC is profitable, then the average venture is profitable, and therefore, on average, they have a positive impact on the markets they are involved in.
EDIT: in case it wasn't clear, every use of "average" by me refers to the mean, not median. So 10% vs 90% doesn't matter as long as the 10% is high enough.
- ForHackernews 12y agoOk, so you've destroyed 10 small businesses and replaced them with 9 startups that fail after 18 months, and 1 that becomes a massive success. That's a win for the VC, and those 10 startups are "on average" profitable. But it's still a loss for society because now we don't have those 9 small businesses or their 9 "disruptive" replacements.