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How many startups fail every year again? Well let's find out: https://www.quora.com/What-percentage-of-startups-fail?srid=...

Technology solves problems, but it doesn't mean every "problem" is actually a problem, or that it's worth solving. There will always be outliers.



Yes, and? It's exactly that kind of focus - focusing on the average outcome rather than the power law outlier outcomes that return your entire fund - that characterize the people who laughed at FB's valuation, as opposed to the VCs who invested in FB.


I agree that risk is certainly required if you want to make a return on your investments, however, all I'm saying is that for every Facebook, there are hundreds more that don't make it where money gets wasted. If I were an investor I'd want to make sure there was a tangible product doing something innovative out there, rather than just a new way to collect and sell user data. I'm not a VC nor do I really inderstand the mindset though, so if investing in miracles is your thing and has worked for you then more power to you.


Yes. Investing in miracles is what VCs do. Investing in 50 companies and only having 5 of them succeed is what they do.

Investing in 50 companies and expecting 45 of them to succeed is called being a small business bank.




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