There is a good reason why VC funding is so haphazard. The VC “experts” actually haven’t the foggiest idea of which entrepreneurs to select and fund. Those VCs who have made big money were often merely lucky; they also picked lots of losers.
The payoff for VCs is generally the ability to sell stock in the venture to others, even when there are no profits to be made.
Some deals have been referred to as legalized Ponzi schemes. (Earl J Weinreb NewsHole® comments.)
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